We examine the effects of mandating compensation disclosure on executive incentive contracts, earnings management, firm value, and social welfare. We develop a moral hazard model with multiple principal-agent pairs facing an external monitor who allocates resources across firms to verify...

This study examines a reputation-concerned entrepreneur’s incentives to provide disaggregated information about a project’s future performance when he seeks to increase both the market price of the project and the market assessment of his ability as a project manager. Two factors determine...

We present a theory of bank disclosure in which banks face both adverse selection and bank run risk. In our model, banks disclose information to reduce adverse selection in credit markets, but information disclosure can also trigger inefficient bank runs. We show that the level of disclosure...