The accuracy of firm information disclosures and the efficiency of long-term investment both play crucial roles in the … managers confront realistic incentives to misreport financial statements and distort their real investment choices. Managers in … this misreporting through disclosure regulation is possible, it incentivizes managers to distort real investment, which …

This paper studies how information disclosure affects investment efficiency and investor welfare in a dynamic setting … accounting disclosures on investment efficiency and investor welfare crucially depend on whether such disclosures convey …). Specifically, investment efficiency and investor welfare unambiguously increase in the precision of disclosures that convey …

We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two …-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are … trade and investment allocations below perfect information levels. The degree of heterogeneity between informed agents' type …

investment behavior. New theories, better econometric procedures, and more detailed panel data sets are behind this movement … general equilibrium aspects of the investment problem also has been significant. The concept of sunk costs is at the center of … modern theories. The implications of these costs for investment go well beyond the neoclassical response to the irreversible …