Whistleblowers may face significant costs from reporting on misconduct. While regulations offering monetary rewards to ensure a certain level of reporting have become increasingly popular around the world, the European Union remains hesitant, requiring only minimum protection for whistleblowers...

Our model combines disclosure requirements and enforcement rules to analyze the impact of enforcement on firms’ reporting behavior. Starting from a voluntary disclosure model with stochastic information endowment, we add an asymmetric mandatory disclosure rule that requires firms with bad...

We present a model that links the opacity of an asset to its liquidity. While low opacity assets are liquid, intermediate levels of opacity provide incentives for investors to acquire private information, causing adverse selection and illiquidity. High opacity, however, benefits liquidity by...

We present a model that links the opacity of an asset to its liquidity. While low opacity assets are liquid, intermediate levels of opacity provide incentives for investors to acquire private information, causing adverse selection and illiquidity. High opacity, however, benefits liquidity by...