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...

We model managers' equilibrium strategies for voluntarily disclosing information about their firm's risk. We consider a multi-firm setting in which the variance of each firm's future cash flow is uncertain. A manager can disclose, at a cost, this variance before offering the firm for sale in a...

In this paper we examine the factors that determine how firms manage large, firm-specific risks, in this case, product liability. We study the impact of this high-probability, high-loss risk on a group of firms that all manage product liability through insurance purchases in the early 1980s. A...

Managers have long argued that the mandated disclosure of private cost information can affect a disclosing firm negatively as rival market participants can make strategic use of the information. In the presence of such quot;proprietary costs,quot; managers withhold private cost information to...

During the last ten years, there has been renewed interest in product costing systems. Many companies have made substantial investments in quot;new and betterquot; costing systems in an attempt to obtain more precise product cost information. In this paper we consider how firms competing in...

The historical dynamics of entry and exit in the financial exchange industry are analyzed for a panel of 741 exchanges in 52 countries from 1855 through 2012. We focus on economic, technological, and regulatory factors. Using novel panel data evidence, we empirically test whether these factors...

Assuming the clean surplus relation, the Edwards-Bell-Ohlson residual income valuation (RIV) model expresses market value of equity as the sum of the book value of equity and the expected discounted future residual incomes. Without assuming the clean surplus relation, Ohlson and Juettner-Nauroth...

International Financial Reporting Standards (IFRS) allow managers flexibility in classifying interest paid, interest received, and dividends received within operating, investing, or financing activities within the statement of cash flows. In contrast, U.S. Generally Accepted Accounting...

The observed international home bias has traditionally been viewed as an anomaly. This paper provides statistical evidence contrary to this view within a mean-variance framework. Two methods of estimating the expected return and covariance parameters are investigated: (i) the traditional...