We examine the impact of public information on firms’ disclosure strategies. We portray two regimes based on a model that extends the setting of Dye (1985) and Jung and Kwon (1988). In the first regime, the firm is able to respond to public information and thus has the last word, and in the...

We examine whether the strength of internal control over financial reporting (internal control) reduces the expropriation of resources from the firm by managers and controlling shareholders. Although we have ample evidence from prior literature that internal controls reduce errors in financial...

This paper investigates the role of management earnings guidance to inform analysts about the effect of conservatism on earnings. Empirical evidence suggests that analysts fail to correctly estimate the downward-bias effect of conservatism, leading to optimistic earnings expectations. I...

We examine whether the strength of internal control over financial reporting (internal control) reduces the expropriation of resources from the firm by managers and controlling shareholders. Although we have ample evidence from prior literature that internal controls reduce errors in financial...