Financial statements capture information on businesses that is useful to shareholders and creditors. Securities valuations and investment risk depend on accounting numbers. Researchers in this area develop theoretical models capturing the complex information content of accounting numbers for valuation and risk. They also establish empirical evidence on the way capital markets price the information on valuation and risk captured in the financial reporting system. This work is relevant to investment managers, investment banks and brokers, and corporate finance practitioners.

Research in this is area examines the determinants of audit quality and audit pricing, covering major regulatory issues (e.g., auditor rotations, auditor public oversight and inspections) as well as the functioning of audit processes and audit firms (e.g., corporate governance mechanisms and audit firms’ structure). Given that auditing entails judgment and decision-making, the characteristics of auditor partners and of audit team members, including their technical competences, ethics and independence, are also under investigation.  

Research in ESG reporting and corporate governance centers on how sustainability disclosures and accounting practices intertwine with corporate governance to enhance value for shareholders and stakeholders. Specific research topics include the impact of corporate disclosure strategy, integrated reporting and sustainability/SDG reporting, sustainability performance indicators and value, political connections, compensation policy, and board of directors on the company’s investment activity, risk-taking, innovation, as well as malpractice such as insider trading and financial misconduct.

Research in this area focuses on the interactions between institutional factors, financial reporting regulation, and enforcement. By exploiting unique data and/or institutional settings, researchers in this area study several topics, including the capital market consequences of accounting harmonization, voluntary corporate disclosures, non-traditional disclosure channels and information intermediaries (e.g., social media), and the role of financial accounting information in debt markets, supply chains and M&A. 

Research in this field concentrates on the role that management accounting has in facilitating economic decision-making and the wider planning and control of organizations. By using archival, case, experimental, field, and survey empirical methods, as well as analytical modelling, research topics investigated include costing and its various derivatives, capital and operational budgeting, performance measurement, transfer pricing and organization-wide planning and control. In addition, research in this area seeks to advance our understanding of how management accounting systems and practices are affected by the broader context in which they are implemented, including the impact of digital transformation and sustainability trends.

Research in this area combines machine learning, such as natural language processing (NLP) and big data analytics, with empirical accounting research to advance our knowledge on financial market communication. Using machine learning technologies on various financial market data, including corporate annual reports, environmental disclosures, earnings calls, and financial analyst reports, researchers in this area are able to harness great computing power to deepen our understanding on the determinants, patterns, and consequences of accounting information.