Shin (2006) has argued that in order to understand the equilibrium patterns of corporate disclosure, it is necessary for researchers to work within an asset pricing framework in which corporate disclosures are endogenously determined. Echoing this sentiment, Larcker and Rusticus (2010) have...

Dye (1985) showed that the optimal disclosure policy, when a manager is randomly endowed with perfect private information, is upper tailed, i.e. the manager only discloses firm value above an appropriate cutoff level. We interpret this strategically as an optimal exercise by management of the...

For the period of 2006 to 2008, we collect Comment Letters issued by the SEC that question the application of US GAAP by US firms or the application of IFRS by European firms registered with the SEC. We investigate whether institutional investors react to the letters by changing their holdings...

In this research we consider how disclosure of accounting policy interacts with subsequent choice over voluntary disclosure of a non-financial performance metric. We compare and contrast regimes. In the first, firms are free to choose between a conservative or an aggressive accounting policy...

If firms disclose the use of independent valuation experts to assess the magnitude of goodwill impairments should investors rationally condition their values on that disclosure? This research shows that firms that disclose use of an independent valuation expert are more likely to report a higher...

A foundational approach is developed for a mathematical theory of managerial disclosure in relation to asset pricing; this involves both the earnings guidance disclosed by firm management and market trackers pricing the firms exposure to quotable risks

Earlier research on non-US companies has documented that listing an American Depositary Receipt results in an increase in US institutional investor holdings. It is suggested that this result arises because US cross listing, with the related US GAAP financial reporting reconciliation...