We study the relative performance of disclosure and auditing in organizations. We consider the information transmission … second decision maker effectively chooses between auditing and disclosure. When the misalignment is preferences reflects a … decision maker can commit to only observe the message (disclosure), or can retain the option to observe the action of the first …

We study the relative performance of disclosure and auditing in organizations. We consider the information transmission … second decision maker effectively chooses between auditing and disclosure. When the misalignment is preferences reflects a … decision maker can commit to only observe the message (disclosure), or can retain the option to observe the action of the first …

-section. Findings – The findings suggest that the market's perception of disclosure quality is higher and private information search …-related characteristics are a subset of concurrent choices made by the company that impacts disclosure quality. Practical implications …

consortia. Interestingly, we find that mandatory disclosure of audit fees could guarantee honest behavior, in equilibrium, for … that audit fees lie in a range which removes incentives to cheat for the auditor and his clients. Such disclosure would … need to be backed by heavy penalties for false disclosure. We also find that while firm-hired intermediaries have a non …