This paper analyzes the information asymmetry between owners/managers and creditors. More specifically, the research investigates the role of both disclosure on financial key performance indicators (FKPIs) and different corporate governance mechanisms in reducing the agency costs of debt. The...

This paper analyzes the informative trading of professional money managers within a rational expectations equilibrium model in which managers care about their performance relative to their peer group. We find that the existence of uninformed managers causes informed managers with relative...