We examine a dynamic experimentation problem in which managers make a binary choice that influences the information available to investors. We model a manager's multi-period problem of discretionary disclosures of the persistent component of earnings, when disclosure of current earnings is...

The 1988 Basel Accord defined what constituted bank capital, and put in place minimum capital adequacy ratios for each type of capital as well as for total bank capital. Regulators as well as market participants, however, have come to rely on Tier 1 capital or equity capital as the main...