We analyze the effect of accounting biases on the profits of firms that compete in a Cournot product market. We find accounting biases strictly decrease firms' profits when the firms are fully equity-financed. However, different results emerge when we introduce debt into the firms' financial...

We study the effects of mandatory disclosure on competitive interactions in the setting of oil & gas (O&G) reserve disclosures by North American public firms. We document that reserve disclosures inform competitors: when one firm announces larger increases in O&G reserves, competitors experience...