Date of Award
Bachelor of Business Administration
Accounting and Finance Department
In 2016, the Financial Accounting Standards Board updated the way lease transactions are reported. This paper offers insight into the financial reporting quality of the early adopters of Accounting Standards Update on Leases, ASU 2016-02. Methodology modeled after an event study on clawback provisions conducted by Dehaan, Hodge, and Shelvin (2013) aids in the development of the hypothesis and matched-sample event study using restatements and audit opinions as proxies for financial reporting quality. It is hypothesized that the early adopters of ASU 2016-02 will have better financial reporting quality when compared to a control group. Results do not support the hypothesis, so an additional analysis on the characteristics of the early adopters is conducted showing poor financial performance potentially explained by the Big Bath Theory.
Eubanks, Hannah D., "An Analysis of the Financial Reporting Quality of Early Adopters of Accounting Standards Update, ASU 2016-02" (2019). Theses and Dissertations. 351.