Managers whose equity-based incentives vest over a shorter time horizon appear to adopt strategies that reduce information environment quality and exacerbate information heterogeneity across investors. Firms with shorter-horizon managerial incentives are more likely to inflate reported earnings...

We study the effect of financing need on a firm's choice between issuing securities and selling assets to finance its investments. The balance sheet effect predicts that a firm prefers to sell assets when the financing need is small as there is less information asymmetry regarding the value of a...