type="main" <title type="main">ABSTRACT</title> <p>This paper analyzes the effects of public information in a perfect competition trading model populated by asymmetrically informed short-horizon investors with different levels of private information precision. We first show that information asymmetry reduces the amount of...</p>

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This paper studies the role of conservative accounting standards in alleviating rational yet dysfunctional unobservable earnings manipulation. We show that when accounting numbers serve both the valuation role (in which potential investors use accounting reports to assess a firm's...