Assistant Professor of Management
Legal Expertise in Top Management: Does it Lead to Conservatism in Accounting?
Lawsuits filed in the last few years illustrate a well-founded belief in accounting circles: overstatements in financial reporting are more likely to trigger lawsuits than understatements because it's easier to show investor harm. "If a company understates, people are surprised in a good way," says Jonathan Black, assistant professor of accounting in Krannert School of Management. "The economic reality is better than the picture that was painted in the financial statements, so they are less likely to initiate a lawsuit."
Full story: Legal Expertise in Top Management: Does it Lead to Conservatism in Accounting?
Discretion used in financial reporting
Accounting professor Jonathan Black discusses his research on discretion in financial reporting
Office: RAWL 4038
Area(s) of Expertise
Disclosure Quality, Capital Markets, Shareholder Litigation, Fair Value Accounting