Anand Jha published in Journal of Business Ethics

Associate Finance Professor Anand Jha had a paper accepted for publication in the Journal of Business Ethics.

The article, solo-authored by Jha, is titled “Financial Reports and Social Capital.”

The Journal of Business Ethics publishes only original articles from a wide variety of methodological and disciplinary perspectives concerning ethical issues related to business that bring something new or unique to the discourse in their field.

Abstract

I examine social capital's effect on financial reports. Based on the social capital literature, I predict that the quality of financial reports is higher when a firm is headquartered in a region with high social capital. Consistent with this prediction, I find that the firms that are headquartered in this type of region in the United States have a lower probability of committing fraud by misrepresenting financial information. Further, I find that the firms in regions with high social capital have lower levels of discretionary accruals and much more readable annual reports.