This paper investigates the relative performance of absorption versus direct costing procedures. Traditionally absorption costing procedures have been defended on the basis of them acting as a proxy for hard to measure opportunity costs. We question the validity of this traditional defence by...

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...

We develop a model in which there is conflict of interest between the management and the shareholders of an organization. Incompleteness of contracts prevents a simple contracting solution to this problem. We suggest that auditors can play a role in aligning the conflicting interests. However,...

We produce new evidence on whether management which is keen to make foreign acquisitions can benefit from consultation with information-intensive institutional investors who have expertise in the target foreign markets. This research suggests that, in such instances, management should recognise...

When thinly traded growth stocks (TTGS) listed on a secondary exchange experience difficulty in gaining investors' attention, one possible solution is to increase the intensity of disclosure. However, if the stock is traded on a quote-driven system, market makers can collude to maintain wide...

We study the no-arbitrage theory of voluntary disclosure (Dye, J Account Res 23:123–145, <CitationRef CitationID="CR6">1985</CitationRef>, and Ostaszewski and Gietzmann, Rev Quant Financ Account 31: 1–27, <CitationRef CitationID="CR17">2008</CitationRef>), generalized to the setting of <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$n$$</EquationSource> </InlineEquation> firms, simultaneously and voluntarily, releasing at the interim-report date...</equationsource></inlineequation></citationref></citationref>

Shin (J Account Res 44(2):351–379, <CitationRef CitationID="CR42">2006</CitationRef>) 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,...</citationref>

This paper tests how informed investors with local expertise can affect cross-border deal success using a comprehensive dataset of corporate acquirers’ share registers. We posit that deals in which long-term investors have a high level of expertise in the target firm's region are more likely...