Do terrorist attacks and mass shootings make big companies more “honest”?

Wednesday, December 6, 2023

A new study about the effect of terror incidents on financial reporting says they might

Terrorist attacks and mass shootings are devastating for the people and communities they affect. These events impact our society in many ways, including perhaps unexpectedly, by changing how big companies calculate and report their earnings.

A recent study by Professor Seda Oz from the School of Accounting and Finance at the University of Waterloo explains why.

"My research found that after major events like terrorist attacks, company managers often become more cautious. They start to think that negative events are more likely to happen, even if that's not the case. As a result, they are less likely to use creative accounting practices to make their company's financial performance look better than it is.,” said Dr. Oz.

To learn more, read the full story on Waterloo News.