Journal of Forensic and Investigative Accounting 17(3-2), Special Issue .
ISSN/ISBN: Not available at this time. DOI: Not available at this time.
Abstract: Introduction Regulators, such as the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC), suggest that the complexity inherent in financial reporting can lead to the increased occurrence of financial statement misreporting (Cox, 2005; Peterson, 2012). High levels of financial reporting quality (FRQ) lead firms to have better information environments (e.g., Li, 2008; You and Zhang, 2009; Lehavy et al., 2011; Peterson, 2012) and lower risk of financial misstatements (Filzen and Peterson, 2015). A firm’s number of business and geographic segments, existence of foreign operations, and managerial decisions are all determinants of FRQ (e.g., Doyle et al., 2007), which is highly correlated with its accounting reporting complexity (Hoitash and Hoitash, 2018). While corporate financial fraud is a “significant threat to the capital markets” as documented in prior literature (e.g., Amiram et al., 2018), few studies have explored the relationship between firms’ fraudulent financial activities and accounting reporting complexity (ARC). In this article, we examine the association between ARC and corporate financial misconduct, which comprehensively covers the irregularities and violations of accounting and business standards (Velte, 2021).
Bibtex:
@article{,
author = {Chenyong Liu and Jacob Haislip and Howard Xu and Lanyi Peng},
title = {Corporate Financial Misconduct and Accounting Reporting Complexity: Evidence from Financial Disclosures in {XBRL}},
year = {2025},
journal = {Journal of Forensic and Investigative Accounting},
volume = {17},
number = {3-2},
url = {https://s3.us-east-1.amazonaws.com/web.nacva.com/JFIA/Issues/JFIA-2025-No3-2.pdf},
}
Reference Type: Journal Article
Subject Area(s): Accounting, General Interest