We study the optimal level of commonality of accounting standards when firms' investments exhibit beauty-contest features as in, e.g., Arya and Mittendorf (2016). We model more commonality of accounting standards as more correlated noises in firms' reports, consistent with the "more harmonized"...

We examine how disclosing information about audit quality affects auditors' effort and investors' investment efficiency. In our setting, the usefulness of audited financial reports for investors depends on both the quality of the underlying financial reporting (e.g., as embodied by GAAP) and the...