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The role of financial reporting in resolving uncertainty about corporate investment opportunities

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  • Ferracuti, Elia
  • Stubben, Stephen R.

Abstract

This discussion of the survey of the literature on financial reporting and corporate investment by Roychowdhury et al. (2019) focuses on an area in this literature that has received less attention—how financial reporting helps managers allocate capital across investment opportunities within their firms in the presence of uncertainty. We discuss the theory on investment under uncertainty and offer suggestions for future research.

Suggested Citation

  • Ferracuti, Elia & Stubben, Stephen R., 2019. "The role of financial reporting in resolving uncertainty about corporate investment opportunities," Journal of Accounting and Economics, Elsevier, vol. 68(2).
    • Handle: RePEc:eee:jaecon:v:68:y:2019:i:2:s0165410119300436
    DOI: 10.1016/j.jacceco.2019.101248
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