Corporate finance

Accounting

Business

Politics

Political science

Finance

Investment (military)

Journal of Accounting and Economics

A fundamental question in accounting is whether and to what extent financial reporting facilitates the allocation of capital to the right investment projects. Over the last two decades, a large and growing body of literature has contributed to our understanding of whether and why financial reporting affects investment decision-making. We review the empirical literature on this topic, provide a framework to organize this literature, and highlight opportunities for future research.

The effects of financial reporting and disclosure on corporate investment: A review