This paper explores the effects of public information (e.g., accounting earnings) in a competitive lending setting where the borrower can engage in risk shifting. If a privately informed "inside" creditor bids against outsider creditors, public information levels the playing field with...

In this study, we show that when a firm needs external financing, information quality has real effects via financing contracts on the firm's input to influence its operational outcome. Interestingly, we find that higher information quality decreases overall efficiency. Our analysis highlights...

This study investigates whether and how customer concentration in supply chains affects suppliers' incentive to engage in real earnings management. Building on the recent debate over the collaboration hypothesis and the rent extraction hypothesis, we show that with concentrated major customers,...

We examine errors in enterprise and equity valuation based on multiples of firm fundamentals. Our study, which is based on a more representative sample (including firms with losses, smaller start up firms, etc.), complements extant studies, which are based on larger, profitable firms followed by...

This paper examines whether firms benefit, in debt contracting, from committing to incorporate future GAAP changes (referred to as rolling GAAP) or not to incorporate any future changes (referred to as frozen GAAP). We show that informative future accounting changes do not necessarily improve...