From an information perspective, sources of risk should be reflected in accounting fundamentals. However, asymmetry in disclosure generated from a decrease in information flow to users of financial statements may lead to a stock price crash when the news is eventually disclosed. The present...

This paper conducts an empirical investigation of the relationship between information asymmetry and real activities manipulation. When information asymmetry is high, stakeholders do not have sufficient resource, incentives, or access to relevant information to monitor manager‘s actions, which...