This paper aims to shed light on the long-standing debate on opportunistic and information perspectives of earnings management from a controlled laboratory experiment. Our results are in favor of the moral hazard explanation over the explanation based on the signaling motive. When we introduce a...

We study a model in which managers' disclosure and investment decisions are both endogenous and managers can manipulate their voluntary reports through (suboptimal) investment, financing or operating decisions. Managers are privately informed about the value of their firm and have incentives to...