Market regulators are concerned about the completeness of management-provided explanations in financial reports and other venues. In particular, the Securities and Exchange Commission has articulated the growing problem of firm managers selectively emphasizing information that is favorable to...

Financial information from firms often contains biased information. A common assumption in the accounting literature is that if investors are aware of biases, they will be able to adjust for those known biases. Drawing on insights from several areas in psychology and accounting, we posit and...