Employee quality and financial reporting outcomes

Andrew C. Call, John L. Campbell, Dan S. Dhaliwal, James R. Moon

Research output: Contribution to journalArticlepeer-review

98 Scopus citations


We examine the association between employee quality and financial reporting outcomes. Using the average workforce education level in MSA(s) where the firm operates as a proxy for employee quality, we find that firms with a high-quality workforce exhibit higher accruals quality, fewer internal control violations, and fewer restatements. These firms also issue superior management forecasts, in terms of frequency, timeliness, accuracy, precision, and bias. Employees located at the firm's headquarters primarily drive our findings. Our evidence suggests employee quality, particularly at a firm's headquarters, is associated with both mandatory and voluntary disclosure quality.

Original languageEnglish (US)
Pages (from-to)123-149
Number of pages27
JournalJournal of Accounting and Economics
Issue number1
StatePublished - Aug 2017


  • education
  • employee characteristics
  • employee quality
  • financial reporting quality

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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