We analyze a model of voluntary disclosure where investors impose a discount for
uncertainty about firm value. We find that a commitment to conservative reporting, defined as …

This article systematically reviews 94 accounting and finance studies that address the real
effects of financial reporting. Whereas the effects of financial reporting on capital suppliers' …

Organizations with a mission that extends “beyond profit” to achieve broader objectives are
becoming increasingly common. This paper studies such hybrid entities—firms that value …

We analyze test design and certification standards when an uninformed seller has the option
to generate and disclose costly information regarding asset quality. We characterize …

The aim of general purpose financial reporting is to provide information that is useful to
investors, lenders, and other creditors. With this goal, regulators have tended to mandate …

We develop a theory of asymmetries between voluntary and mandatory disclosure.
Efficiently designed mandatory disclosure policies are substitutes for excessive voluntary …

ABSTRACT Verrecchia (1983, 1990) introduced the proprietary cost hypothesis in which
exogenous disclosure costs are a reduced-form interpretation of lost competitive advantage …

We develop a model of voluntary disclosure and production decisions and use it to establish
that firms will tacitly collude by disclosing when current market demand is low and when the …

This study examines the costs and benefits of uniform accounting regulation in the presence
of heterogeneous firms that can lobby the regulator. A commitment to uniform regulation …

We analyze the effect of accounting bias on the competition and market structure of an
industry. In our model, firms' interim accounting reports on investment projects may contain …