In this paper we consider a situation in which a firm may be able to influence the investors' ability to short-sell its stock. We analyze the effect short-selling restrictions have on the market price and the subsequent effect generated on the market for corporate control. More precisely, we...

We analyze the interactions between two managerial tasks: investing and revealing information. We assume that a manager can invest influencing the firm's quality, then he reports this quality to investors. Whenever truthful reporting is not an equilibrium, the manager has incentives to...