This paper studies the influence of a manager's pre-decision use of an information system on the central office's decision to provide such a system in the first place. At the outset, the manager is ignorant about the cost of an investment project. Higher effort when using the information system...

In this study we examine the valuation implications for different sources of growth. Specifically, we investigate whether supplemental information provided by firms to assist financial statement users in understanding the sources of growth is reflected in a premium to those firms. We examine a...

Russian Abstract: Работа посвящена анализу содержания концептов прозрачности, счетности и подотчетности в различных социально-экономических дискурсах. Основной метод...

How should a firm measure a productive asset used as collateral in a credit agreement? To answer this question, we develop a model in which firms borrow funds subject to collateral constraints. We characterize the qualities of optimal asset measurements and analyze their interactions with...

The extant literature provides evidence that, for many SEC 8-K filings, there is a significant market reaction on the date of the event that led to the 8-K filing, on the days between the event date and the filing date and on the filing date. We address the question, who pays attention and who...

How should a firm measure a productive asset used as collateral in a credit agreement? To answer this question, we develop a model in which firms borrow funds subject to collateral constraints. We characterize the qualities of optimal asset measurements and analyze their interactions with...

In his review of 30 years of research in Prospect Theory, Barberis (2013) notes that support for Prospect Theory had come mainly from the laboratory. In this paper, I write about a recurring phenomenon in real life that is consistent with Prospect Theory predictions in decision-making loss...

This paper examines the effect of the Public Company Accounting Oversight Board (PCAOB) international inspection program on companies' financing and investing decisions. Estimates from difference-in-differences regressions suggest that companies respond to their auditor receiving a...

While the literature appeals to efficiency arguments from agency theory to explain the relative rise of CEO equity compensation, prior work has given less focus to CEO pay contracts based on equity and cash incentives that directly (analytically) maximize the total return of firm owners. The...