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Numerous rules mandate the disclosure of information. This article analyzes why such rules are enacted. Specifically, 1) why wouldn't firms voluntarily disclose their private information; and 2) given that voluntary disclosure would not be forthcoming, who has the incentive to lobby for...
Persistent link: https://www.econbiz.de/10014101521
We propose that the product life cycle is important in understanding firm disclosure policies and test this hypothesis using a 4-dimensional text-based life cycle model. Mature-stage firms disclose more, consistent with lowering search costs for an outward-focused investment strategy seeking...
Persistent link: https://www.econbiz.de/10013251172
We develop a unified treatment of a broad class of truthful disclosure games. Such games have, at most, one equilibrium that is reasonable given a commonly used signaling refinement. We provide a simple algorithm to construct the unique equilibrium strategy and beliefs, and identify necessary...
Persistent link: https://www.econbiz.de/10013003878
We exploit the introduction of a "risks and challenges" (RC) section on the crowdfunding website Kickstarter.com to study the role of disclosure in markets characterized by severe information asymmetries and agency frictions. Although the RC section contains voluntary and unaudited disclosures,...
Persistent link: https://www.econbiz.de/10012916085
We examine whether managers’ activities in striving to reach earnings targets affect their firms’ product quality. We find that firms suspected of manipulating real activities in trying to meet earnings benchmarks exhibit a higher likelihood and frequency of product recalls. Other evidence...
Persistent link: https://www.econbiz.de/10013220711
We investigate whether information transparency at the industry level is associated with the sustainability of within-industry differences in profitability. Since competitive actions lead to the elimination of intra-industry profitability differences, this investigation provides evidence on...
Persistent link: https://www.econbiz.de/10013236322
We examine whether firms’ co-opetition (i.e., simultaneously competitive and cooperative) behaviors in standard-setting organizations (SSOs) affect their public R&D disclosure. We find that relative to matched control firms, firms that participate in SSOs increase their narrative R&D...
Persistent link: https://www.econbiz.de/10013236941
A critical issue in international financial management is that of "balancing the government's books" (The Economist 1994, p. 73). Since governmental commitments to maintaining or improving citizens' well-being are subject to re­source constraints, the Governmental Accounting Standards Board...
Persistent link: https://www.econbiz.de/10013048073
This study addresses whether an auditor change (a resignation or a dismissal) mitigates information asymmetry as measured by market liquidity or trading activity. For auditor dismissals our results show no effect on our sample firms' market liquidity or trading activity. By contrast, for auditor...
Persistent link: https://www.econbiz.de/10013048261
High disclosure standards are perceived to be the cornerstone of the U.S. securities markets. However. the Securities and Exchange Commission (SEC) prohibits the quantification of unproved reserves by U.S. oil and gas firms (based on the argument that it would mislead unsophisticated individual...
Persistent link: https://www.econbiz.de/10013048340