Document Type
Article
Publication Date
5-1-2008
Abstract
Calls for the reformation of financial reporting have exacerbated in recent years in light of a rapidly changing global investment climate and in the wake of financial crises such as Enron. This study explores the existing model of financial reporting, and the characteristics that are identified with investor confidence, and whether they meet their primary objective: providing information that helps users to make resource allocation decisions. The study examines current literature and conducts interviews to determine the types of information that users find relevant. The evidence suggest that the current financial reporting system is overly complex; that there is lack of disclosure of forward-oriented types of information which are comparable over time (e.g. value drivers, critical success factors as well as non-financial information), and, despite an increasing use of fair values as a measurement objective in some assets and liabilities, many investors propose using fair-values more pervasively for reasons of importance and relevance.
Keywords
accounting--research, financial reporting, investor confidence, fair-value.
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Brearey, Chester H., "Investor Views of Financial Reporting: Recent Evidence of the Expectation Gap" (2008). Student Scholarship. 267.
https://commons.case.edu/studentworks/267