Financial Reporting Impacted by Terrorism and Mass Shootings: Study Shows Companies Become More Cautious
New York, New York: A recent study published in the British Accounting Review suggests that businesses tend to exercise greater caution in their financial reporting following a terrorist attack or mass shooting. The study, conducted by Seda Oz, an assistant professor of accounting at the University of Waterloo in Canada, found that companies located in areas affected by such events tend to display a decline in accrual-based and real earnings management, as well as pessimistic …