Biases in Accounting and Nonaccounting Information: Substitutes or Complements?

Published

Journal Article

Copyright ©, University of Chicago on behalf of the Accounting Research Center, 2016 This paper studies how bias in nonaccounting and in accounting information should be related. Bias in accounting information is modeled, as in some recent literature, as an alteration in the relative information content of accounting numbers. The optimal bias in one type of information is shown to be a complement of the bias in the other type. This result can be applied in various settings to explain a number of phenomena.

Full Text

Duke Authors

Cited Authors

  • Jiang, X

Published Date

  • December 1, 2016

Published In

Volume / Issue

  • 54 / 5

Start / End Page

  • 1297 - 1330

Electronic International Standard Serial Number (EISSN)

  • 1475-679X

International Standard Serial Number (ISSN)

  • 0021-8456

Digital Object Identifier (DOI)

  • 10.1111/1475-679X.12153

Citation Source

  • Scopus