KANODIA, CHANDRA; SINGH, RAJDEEP; SPERO, ANDREW E. - In: Journal of Accounting Research 43 (2005) 3, pp. 487-519
Accounting measurements of firms' investments are usually imprecise. We study the economic consequences of such imprecision when it interacts with information asymmetry regarding an investment project's ex ante profitability, known only by the firm's managers. Absent agency and risk-sharing...