We investigate the effect of interim reporting on accounting quality. We assume that the manager has a preference for a high stock price. The manager may bias accounting reports in each sub-period. We assume that the enforcement system ties sanctions to the detected gap between total reported...

The so-called disclosure principle is a 'puzzle' in the accounting literature: Game theoretic models of financial markets show that in equilibrium firms should disclose all their private information. Yet, the result is not convincing. Researchers have therefore built sophisticated models in...

We consider supplier-credit contracting between a manufacturer and a liquidity-constrained dealer. We show that the timeliness according to which the dealer receives demand information has a significant impact on the optimal contract. If the manufacturer cannot be sure that a dealer without...