Casting mechanism design with evidence in the framework of Myerson (1982) implies that his generalized revelation principle directly applies, and we thus obtain standard notions of incentive compatible direct mechanisms. Their specific nature depends, however, on whether the presentation of...

This study investigates whether and how managers respond to major negative news by increasing the information content of their MD&A disclosures. We predict that major negative news influences managers' disclosure decisions by increasing legitimacy pressures and reducing opportunities to obscure...

We study a dynamic game in which a monopolistic seller sequentially discloses information about a binary state to a consumer through priced experiments. The consumer privately observes a binary signal which influences her willingness to pay for information. We show that if buyer types favor...

Rational individuals who obtain a premium by passing an imprecise test change their choice of costly competence when the pass threshold varies. At given premium that reaction prevents variation of the failure rate completely if the marginal cost of competence is constant, only partially if it is...

In this paper, I examine the value that investors place on analysts who exhibit lower forecast error volatility. Building on prior empirical research, I develop a theoretical model that formalizes the role of error volatility in investment decision-making. I propose an investment strategy that...

Purpose - The stock exchanges in China assess firms' disclosure quality annually according to a grading sheet. The grading sheet evaluates mandatory and voluntary disclosures, investor relations, and compliance with and violations of securities laws; some items are publicly observable, others...

Most news stories contain both granular quantitative information and coarse categorizations. For instance, company earnings are typically reported as a dollar figure alongside categorizations, such as whether earnings beat or missed market expectations. We study the hypothesis that when a...

This study provides evidence on the performance and labor market trajectories of sell-side equity analysts with prior experience or education in accounting. Analysts with work experience in accounting issue both more accurate earnings per share (EPS) forecasts and more profitable sell...

This research examines how influencer information spreads and is accepted by consumers, focusing on a Tunisian sample of social media users, and how these effects percolate into consumers' perception of the quality of cosmetic products. Drawing on the Information Adoption Model (IAM), this study...

Active transparency is developed through the provision of information by public administrations. However, for this information to be reusable, it must be offered through free licenses and open formats, two characteristics present in open data. This paper aims to investigate the disclosure of...

This research explores the widely known gap between the attitudes on sustainability that consumers express and their subsequent behavior concerning the purchase of sustainable clothing. Given the increasing global mass production and consumption of clothes, the textile industry is taking action...

Using a sample of Chinese listed firms over 2011-2020, this study examines the impact of digital finance on accounting information transparency. Our findings reveal an inverted U-shaped relationship between digital finance and accounting information transparency, suggesting that digital finance...

Advance receipts reflect implicit performance information, as they measure unearned revenue such that cash is received before the revenue can be recognised. This paper examines the information content and related pricing impact of advance receipts. We find that (1) advance receipts are...

This study adopts multi-modal machine learning to deeply interpret corporate non-financial information and explore the influence of corporate leverage manipulation on non-financial information disclosure. It is found that enterprises will strategically disclose non-financial information when...

This paper examines whether improvements in a firm's tax system impose positive spillover effects on its accounting system and accounting information quality. Using China's 2014 Tax-paying Credit Rating system, we find that A-rated firms exhibit lower discretionary accruals and improved...

This study examines the behavior of bank stock prices in Jordan in relation to a significant tax reform event. We analyze a sample of all banks listed on the Amman Stock Exchange to study the market response to the Amended Income Tax Law 2018. In the proposal period, investors were anticipating...

We study how framing interplays with information design. Whereas Sender conceives all contingencies separately, Receiver cannot initially distinguish among some of them, i.e., has a coarse frame. To influence Receiver’s behavior, Sender first decides whether to refine Receiver’s frame and...