Advanced search
Publication Cover
Accounting and Business Research Volume 36, 2006 - Issue sup1: Special Issue: International Accounting Policy Forum
Submit an article Journal homepage
1,163
Views
105
CrossRef citations to date
0
Altmetric
Original Articles

What has the invisible hand achieved?

Ross L. Watts Sloan School, Massachusetts Institute of Technology, E-mail: [email protected]
Pages 51-61 | Published online: 28 Feb 2012

Citations (105)

Keep up to date with the latest research on this topic with citation updates for this article.

Subscribe to citation updates

Read on this site (22)

Jesper Banghøy, Jan Marton, Thomas Plenborg & Emmeli Runesson. (2023) Revisiting pay-performance sensitivity around IFRS adoption in Europe: the dominant role of Germany. Accounting and Business Research 53:7, pages 790-820.
Read now
Ken Peasnell. (2020) Editing Accounting and Business Research 1994–2006: the transition years in retrospect. Accounting and Business Research 50:7, pages 702-712.
Read now
Cristina Abad, Elisabetta Barone, Benita M. Gullkvist, Niclas Hellman, Ana Marques, Jan Marton, Stephani Mason, Ricardo Luiz Menezes Silva, Ana Morais, Soledad Moya Gutierrez, Alberto Quagli & Anna Vysotskaya. (2020) On the ‘Disclosure Initiative – Principles of Disclosure’: The EAA Financial Reporting Standards Committee’s View. Accounting in Europe 17:1, pages 1-32.
Read now
Thorsten Sellhorn & Christian Stier. (2019) Fair Value Measurement for Long-Lived Operating Assets: Research Evidence. European Accounting Review 28:3, pages 573-603.
Read now
Berit Hartmann, Jan Marton & Rebecca Söderström. (2018) The Improbability of Fraud in Accounting for Derivatives: A Case Study on the Boundaries of Financial Reporting Compliance. European Accounting Review 27:5, pages 845-873.
Read now
Laura Parte, Anne M. Garvey & José Antonio Gonzalo-Angulo. (2018) Cognitive Load Theory: Why It’s Important for International Business Teaching and Financial Reporting. Journal of Teaching in International Business 29:2, pages 134-160.
Read now
Aziz Xavier Beiruth, Luiz Paulo Lopes Fávero, Fernando Dal Ri Murcia, José Elias Feres de Almeida & Talles Brugni. (2017) Structural changes in covenants through the adoption of IFRS in Brazil. Accounting Forum 41:3, pages 147-160.
Read now
Sohyung Kim & Darlene Bay. (2017) Cognitive Dissonance as an Explanation of Goodwill Write-Offs. Journal of Behavioral Finance 18:1, pages 14-28.
Read now
Alain Schatt, Leonidas Doukakis, Corinne Bessieux-Ollier & Elisabeth Walliser. (2016) Do Goodwill Impairments by European Firms Provide Useful Information to Investors?. Accounting in Europe 13:3, pages 307-327.
Read now
Carlo D'Augusta, Sasson Bar-Yosef & Annalisa Prencipe. (2016) The Effects of Conservative Reporting on Investor Disagreement. European Accounting Review 25:3, pages 451-485.
Read now
Thorsten Knauer & Arnt Wöhrmann. (2016) Market Reaction to Goodwill Impairments. European Accounting Review 25:3, pages 421-449.
Read now
Araceli Mora & Martin Walker. (2015) The implications of research on accounting conservatism for accounting standard setting. Accounting and Business Research 45:5, pages 620-650.
Read now
Richard Barker. (2015) Conservatism, prudence and the IASB's conceptual framework. Accounting and Business Research 45:4, pages 514-538.
Read now
Alfred Wagenhofer. (2014) The role of revenue recognition in performance reporting. Accounting and Business Research 44:4, pages 349-379.
Read now
Nicola Moscariello, Len Skerratt & Michele Pizzo. (2014) Mandatory IFRS adoption and the cost of debt in Italy and UK. Accounting and Business Research 44:1, pages 63-82.
Read now
Richard Barker & Anne McGeachin. (2013) Why is there inconsistency in accounting for liabilities in IFRS? An analysis of recognition, measurement, estimation and conservatism. Accounting and Business Research 43:6, pages 579-604.
Read now
Lakshmanan Shivakumar. (2013) The role of financial reporting in debt contracting and in stewardship. Accounting and Business Research 43:4, pages 362-383.
Read now
Brian A. Rutherford. (2011) Accounting Research and Accounting Policy: What Kind of Gap?. Accounting in Europe 8:2, pages 141-154.
Read now
Gregory Waymire & Sudipta Basu. (2011) Economic crisis and accounting evolution. Accounting and Business Research 41:3, pages 207-232.
Read now
A. Quagli & F. Avallone. (2010) Fair Value or Cost Model? Drivers of Choice for IAS 40 in the Real Estate Industry. European Accounting Review 19:3, pages 461-493.
Read now
Martin Walker. (2006) How can business reporting be improved? A research perspective. Accounting and Business Research 36:sup1, pages 95-105.
Read now
Massimiliano Bonacchi, Antonio Marra & Ron Shalev. The Effect of Fair Value Accounting on Firm Public Debt – Evidence from Business Combinations Under Common Control. European Accounting Review 0:0, pages 1-29.
Read now

Articles from other publishers (83)

Hyoung Seok Choo, Sun-ae Cho & Jeongeun Emilia Lee. (2024) Corporate governance report compliance rate and accounting conservatism: New evidence from Korea. Investment Management and Financial Innovations 21:1, pages 116-130.
Crossref
Yun Shen, Vito Mollica & Aldo Fortunato Dalla Costa. (2023) The bright side of CEO narcissism and its impact on accounting conservatism. Journal of Accounting Literature 46:1, pages 1-25.
Crossref
Rong Huang, Carol Marquardt & Bo Zhang. (2022) Revenue-expense matching and performance measure choice. Review of Accounting Studies 28:3, pages 1690-1720.
Crossref
Şebnem YAŞAR. (2023) GERÇEĞE UYGUN DEĞERE ELEŞTİREL BİR BAKIŞ: DOST MU YOKSA DÜŞMAN MI?A CRITICAL VIEW OF FAIR VALUE: IS IT A FRIEND OR A FOE?. Muhasebe ve Denetime Bakış 22:68, pages 109-126.
Crossref
Sinan Salem Kasim Al-Shaikh, Hussen Amran Naji Al-Refiay & Azher Subhi Abdulhussein. (2023) The implications of IFRS on the credit market: Evidence from the emerging market. Corporate Governance and Organizational Behavior Review 7:1, pages 29-43.
Crossref
Ying Zhou. (2022) Proprietary Costs and Corporate Lobbying Against Changes in Mandatory Disclosure. Management Science 68:11, pages 8483-8505.
Crossref
Kevin Christopher Carduff. 2022. Corporate Reporting: From Stewardship to Contract, the Annual Reports of the United States Steel Corporation 1902–2006. Corporate Reporting: From Stewardship to Contract, the Annual Reports of the United States Steel Corporation 1902–2006 93 96 .
Parthiban David, Ravi Dharwadkar & Augustine Duru. (2022) Financial Reporting Choices, Governance Structures, and Strategic Assets: A Transaction Cost Perspective. Academy of Management Review 47:4, pages 579-599.
Crossref
Stanley Clark, Brandon Vagner & Terry Ward. (2022) Fair value hierarchy, bargaining power, and audit pricing across audit firms’ client portfolios. Journal of Corporate Accounting & Finance 33:4, pages 59-73.
Crossref
Sezer KÜLAH & Cemal İBİŞ. (2022) IFRS 8 and VALUE RELEVANCE: EVIDENCE FROM TURKISH LISTED COMPANIES. Journal of Research in Business 7:1, pages 123-137.
Crossref
Bilal Kimouche. (2022) Intangible Assets, Goodwill and Earnings Management: Evidence from France and the Uk. Folia Oeconomica Stetinensia 22:1, pages 111-129.
Crossref
Wonlop Writthym Buachoom. 2022. Advances in Pacific Basin Business, Economics and Finance. Advances in Pacific Basin Business, Economics and Finance 209 228 .
Maria Elena Olante & Ugo Lassini. (2022) Investment property: Fair value or cost model? Recent evidence from the application of IAS 40 in Europe. Advances in Accounting 56, pages 100568.
Crossref
Gabriel Donleavy. (2021) The Nuances of fair value history: A rejoinder to Cardao-Pito. Accounting History 27:1, pages 153-170.
Crossref
Oleh Pasko, Fuli Chen, Nataliia Birchenko & Natalia Ryzhikova. (2021) Corporate Governance Attributes and Accounting Conservatism: Evidence from China. Studies in Business and Economics 16:3, pages 173-189.
Crossref
Li Cui, Pamela Kent, Sujin Kim & Shan Li. (2021) Accounting conservatism and firm performance during the COVID‐19 pandemic. Accounting & Finance 61:4, pages 5543-5579.
Crossref
Lucía Mellado & Laura Parte. 2021. Eurasian Economic Perspectives. Eurasian Economic Perspectives 3 22 .
Anthony Chen, James (Jianxin) Gong & Richard (Hung-Yuan) Lu. (2020) The effect of principles-based standards on financial statement comparability: The case of SFAS-142. Advances in Accounting 49, pages 100474.
Crossref
Babajide Oyewo. (2020) Diffusion of fair value measurement (IFRS 13): Perception of Auditors. Contaduría y Administración 66:2, pages 241.
Crossref
A. O. Ovcharov & A. M. Terekhov. (2020) Econometric analysis of the use of biological assets in agricultural organizations. Statistics and Economics 17:1, pages 79-87.
Crossref
Yosra Makni Fourati, Rania Chakroun Ghorbel & Anis Jarboui. (2020) Sticky cost behavior and its implication on accounting conservatism: a cross-country study. Journal of Financial Reporting and Accounting 18:1, pages 169-197.
Crossref
Vincent Y.S. Chen, Edmund C. Keung & I-Min Lin. (2019) Disclosure of fair value measurement in goodwill impairment test and audit fees. Journal of Contemporary Accounting & Economics 15:3, pages 100160.
Crossref
Gabriel Donleavy. (2018) An inquiry into the origins of fair value. Accounting History 24:2, pages 253-268.
Crossref
John (Xuefeng) Jiang, Isabel Yanyan Wang & Daniel D. Wangerin. (2018) How does the FASB make decisions? A descriptive study of agenda-setting and the role of individual board members. Accounting, Organizations and Society 71, pages 30-46.
Crossref
Ahmet TERZİ. (2018) Muhasebe Düzenlemeleri: Kontrol Kimde?ACCOUNTING REGULATIONS: WHO CALLS THE SHOTS?. Karadeniz Uluslararası Bilimsel Dergi 39:39, pages 20-29.
Crossref
Vinícius Simmer de Lima, Gerlando Augusto Sampaio Franco de Lima & Giorgio Gotti. (2018) Effects of the Adoption of IFRS on the Credit Market: Evidence from Brazil. The International Journal of Accounting 53:2, pages 77-101.
Crossref
HANS B. CHRISTENSEN & VALERI V. NIKOLAEV. (2017) Contracting on GAAP Changes: Large Sample Evidence. Journal of Accounting Research 55:5, pages 1021-1050.
Crossref
Richard M. Baylis, Peter Burnap, Mark A. Clatworthy, Mahmoud A. Gad & Christopher K.M. Pong. (2017) Private lenders’ demand for audit. Journal of Accounting and Economics 64:1, pages 78-97.
Crossref
Kevin C. W. Chen & Feng Tang. (2017) Post‐ IFRS Revaluation Adjustments and Executive Compensation . Contemporary Accounting Research 34:2, pages 1210-1231.
Crossref
Thabang Mokoaleli-Mokoteli & George Emmanuel Iatridis. (2017) Big 4 auditing companies, earnings manipulation and earnings conservatism: evidence from an emerging market. Investment Management and Financial Innovations 14:1, pages 35-45.
Crossref
Pan Yuner, Georgios Georgakopoulos, Konstantinos Z. Vasileiou & Dionysios Kafousias. (2017) Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis. International Journal of Corporate Finance and Accounting 4:1, pages 35-56.
Crossref
Bin Ke, Yubo Li & Hongqi Yuan. (2016) The substantial convergence of Chinese accounting standards with IFRS and the managerial pay-for-accounting performance sensitivity of publicly listed Chinese firms. Journal of Accounting and Public Policy 35:6, pages 567-591.
Crossref
Kerry Anne Bodle, Patti J. Cybinski & Reza Monem. (2016) Effect of IFRS adoption on financial reporting quality. Accounting Research Journal 29:3, pages 292-312.
Crossref
DAIN C. DONELSON, JOHN MCINNIS & RICHARD D. MERGENTHALER. (2016) Explaining Rules‐Based Characteristics in U.S. GAAP: Theories and Evidence. Journal of Accounting Research 54:3, pages 827-861.
Crossref
Karthik Balakrishnan, Ross Watts & Luo Zuo. (2016) The Effect of Accounting Conservatism on Corporate Investment during the Global Financial Crisis. Journal of Business Finance & Accounting 43:5-6, pages 513-542.
Crossref
George Emmanuel Iatridis. (2016) Financial reporting language in financial statements: Does pessimism restrict the potential for managerial opportunism?. International Review of Financial Analysis 45, pages 1-17.
Crossref
He Wen & Stephen R. Moehrle. (2016) Accounting for goodwill: An academic literature review and analysis to inform the debate. Research in Accounting Regulation 28:1, pages 11-21.
Crossref
Christoph Pelger. (2016) Practices of standard-setting – An analysis of the IASB's and FASB's process of identifying the objective of financial reporting. Accounting, Organizations and Society 50, pages 51-73.
Crossref
Christoph Kuhner & Christoph Pelger. (2015) On the Relationship of Stewardship and Valuation-An Analytical Viewpoint. Abacus 51:3, pages 379-411.
Crossref
Richard Barker & Anne McGeachin. (2015) An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative. Abacus 51:2, pages 169-207.
Crossref
Georgios Voulgaris, Konstantinos Stathopoulos & Martin Walker. (2014) IFRS and the Use of Accounting-Based Performance Measures in Executive Pay. The International Journal of Accounting 49:4, pages 479-514.
Crossref
Richard Chung, Michael Firth, Jeong-Bon Kim & Lei Pang. 2014. Corporate Governance in Emerging Markets. Corporate Governance in Emerging Markets 197 238 .
Brandon Gipper, Brett J Lombardi & Douglas J Skinner. (2013) The politics of accounting standard-setting: A review of empirical research. Australian Journal of Management 38:3, pages 523-551.
Crossref
Mark W. Nelson & Douglas J. Skinner. (2013) How should we think about earnings quality? A discussion of “Earnings quality: Evidence from the field”. Journal of Accounting and Economics 56:2-3, pages 34-41.
Crossref
Francesco Dainelli, Laura Bini & Francesco Giunta. (2013) Signaling strategies in annual reports: Evidence from the disclosure of performance indicators. Advances in Accounting 29:2, pages 267-277.
Crossref
Ronita Ram & Susan Newberry. (2013) IFRS FOR SMEs : THE IASB'S DUE PROCESS . Australian Accounting Review 23:1, pages 3-17.
Crossref
Karthik Ramanna & Ross L. Watts. (2012) Evidence on the use of unverifiable estimates in required goodwill impairment. Review of Accounting Studies 17:4, pages 749-780.
Crossref
S. McCartney & A.J. Arnold. (2012) Financial capitalism, incorporation and the emergence of financial reporting information. Accounting, Auditing & Accountability Journal 25:8, pages 1290-1316.
Crossref
Pervaiz Alam & Karin A. Petruska. (2012) Conservatism, SEC investigation, and fraud. Journal of Accounting and Public Policy 31:4, pages 399-431.
Crossref
Mari Paananen, Annelies Renders & Kim M. Shima. (2011) The Amendment of IAS 39. Journal of Accounting, Auditing & Finance 27:2, pages 208-235.
Crossref
Josep M.a Argilés bosch, Anna Sabata Aliberch & Josep García Blandón. (2012) A Comparative Study of Difficulties in Accounting Preparation and Judgement in Agriculture Using Fair Value and Historical Cost for Biological Assets Valuation. Revista de Contabilidad 15:1, pages 109-142.
Crossref
Douglas J. Skinner. (2011) Discussion of “Accounting standards and debt covenants: Has the “Balance Sheet Approach” led to a decline in the use of balance sheet covenants?”. Journal of Accounting and Economics 52:2-3, pages 203-208.
Crossref
Josep M. Argilés, Josep Garcia-Blandon & Teresa Monllau. (2011) Fair value versus historical cost-based valuation for biological assets: predictability of financial information. Revista de Contabilidad 14:2, pages 87-113.
Crossref
GEORGE SERAFEIM. (2011) Consequences and Institutional Determinants of Unregulated Corporate Financial Statements: Evidence from Embedded Value Reporting. Journal of Accounting Research 49:2, pages 529-571.
Crossref
George Emmanuel Iatridis. (2011) Accounting disclosures, accounting quality and conditional and unconditional conservatism. International Review of Financial Analysis 20:2, pages 88-102.
Crossref
NINGZHONG LI. (2010) Negotiated Measurement Rules in Debt Contracts. Journal of Accounting Research 48:5, pages 1103-1144.
Crossref
S.P. Kothari, Karthik Ramanna & Douglas J. Skinner. (2010) Implications for GAAP from an analysis of positive research in accounting. Journal of Accounting and Economics 50:2-3, pages 246-286.
Crossref
Joanne Horton & George Serafeim. (2009) Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of Accounting Studies 15:4, pages 725-751.
Crossref
Songlan Peng & Kathryn Bewley. (2010) Adaptability to fair value accounting in an emerging economy. Accounting, Auditing & Accountability Journal 23:8, pages 982-1011.
Crossref
Rolf Uwe Fülbier, Joachim Gassen & Thorsten Sellhorn. (2008) Vorsichtige Rechnungslegung — Theoretische Erklärung und empirische Evidenz —Accounting conservatism — Theoretical foundations and empirical evidence. Zeitschrift für Betriebswirtschaft 78:12, pages 1317-1342.
Crossref
Ryan LaFond & Ross L. Watts. (2008) The Information Role of Conservatism. The Accounting Review 83:2, pages 447-478.
Crossref
Beatriz Garcia Osma, Encarna Guillamon Saorin & Facundo Mercado. (2022) The Confirmatory Role of Conditional Conservatism over Voluntary Disclosure. SSRN Electronic Journal.
Crossref
Rong Huang, Carol Marquardt & Bo Zhang. (2021) Revenue-expense matching and performance measure choice. SSRN Electronic Journal.
Crossref
Shin Hyoung Kwon & Tingting Ye. (2019) Managerial Ability and Intangible Assets: Evidence From Purchase Price Allocations in Mergers and Acquisitions. SSRN Electronic Journal.
Crossref
Vincent Chen, Edmund C. Keung & I-Min Lin. (2014) Auditor Risk Assessment and Disclosure of Fair Value Measurement in Goodwill Impairment Test. SSRN Electronic Journal.
Crossref
Thorsten Sellhorn & Christian Stier. (2017) Fair Value Measurement for Long-Lived Operating Assets: Research Evidence. SSRN Electronic Journal.
Crossref
John (Xuefeng) Jiang & Isabel Yanyan Wang. (2017) How Does the FASB Make Decisions? Agenda Setting, Individual Board Members, and Fair Value Accounting. SSRN Electronic Journal.
Crossref
Ross L. Watts & Luo Zuo. (2016) Understanding Practice and Institutions: A Historical Perspective. SSRN Electronic Journal.
Crossref
Brian Singleton-Green. (2016) Long-Term Investment and Accounting: Overcoming Short-Term Bias. SSRN Electronic Journal.
Crossref
He Jennifer Wen & Stephen R. Moehrle. (2015) Accounting for Goodwill: A Literature Review and Analysis. SSRN Electronic Journal.
Crossref
Richard H. Macve. (2013) 'Trading Places': A UK (and IFRS) Comment. SSRN Electronic Journal.
Crossref
Brandon Gipper, Brett Lombardi & Douglas J. Skinner. (2013) The Politics of Accounting Standard-Setting: A Review of Empirical Research. SSRN Electronic Journal.
Crossref
Mark W. Nelson & Douglas J. Skinner. (2013) How Should We Think About Earnings Quality? A Discussion of 'Earnings Quality: Evidence from the Field'. SSRN Electronic Journal.
Crossref
Lakshmanan Shivakumar. (2013) The Role of Financial Reporting in Debt Contracting and in Stewardship. SSRN Electronic Journal.
Crossref
Xiaoting (Christy) Lu & Samir Trabelsi. (2013) Information Asymmetry and Accounting Conservatism Under IFRS Adoption. SSRN Electronic Journal.
Crossref
Carlo D'Augusta, Sasson Bar-Yosef & Annalisa Prencipe. (2012) Conservative Reporting and Investors’ Divergence of Opinion. SSRN Electronic Journal.
Crossref
Thorsten Knauer & Arnt Woehrmann. (2012) Market Reaction to Goodwill Impairments. SSRN Electronic Journal.
Crossref
Douglas J. Skinner. (2011) Discussion of 'Accounting Standards and Debt Covenants: Has the 'Balance Sheet Approach' Led to a Decline in the Use of Balance Sheet Covenants?'. SSRN Electronic Journal.
Crossref
Ross L. Watts & Luo Zuo. (2011) Accounting Conservatism and Firm Value: Evidence from the Global Financial Crisis. SSRN Electronic Journal.
Crossref
Georgios Voulgaris, Konstantinos Stathopoulos & Martin Walker. (2012) IFRS and the Use of Accounting-Based Performance Measures in Executive Pay. SSRN Electronic Journal.
Crossref
Gregory B. Waymire & Sudipta Basu. (2011) Economic Crisis and Accounting Evolution. SSRN Electronic Journal.
Crossref
Rolf Uwe Fuelbier, Joerg-Markus Hitz & Thorsten Sellhorn. (2008) Relevance of Academic Research and Researchers' Role in the IASB's Financial Reporting Standard Setting. SSRN Electronic Journal.
Crossref
Karthik Ramanna & Ross L. Watts. (2007) Evidence on the Effects of Unverifiable Fair-Value Accounting. SSRN Electronic Journal.
Crossref

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Order Reprints Request Corporate Permissions

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

Request Academic Permissions

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.