This paper examines the demand for disclosure rules by informed managers interested in increasing the market price of their firms. Within a model of political influence, a majority of managers chooses disclosure rules with which all firms must comply. In equilibrium, disclosure rules are...

In most organizations, the accounting system is the primary source of "observables," such as payoffs, actions, etc. This paper explores the effects of one aspect of accounting systems, namely the method of valuation of assets and liabilities, on the structure of incentives. It is found that the...