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...

Firm-specific information can affect expected returns if it affects investor uncertainty about risk-factor loadings. We show that a stock's expected return is decreasing in factor-loading uncertainty, controlling for the average level of its factor loading. When loadings are persistent, learning...

In this paper, we analytically examine firms' joint decisions to affect the informativeness of their key performance indicators (KPIs) and the accessibility of their supplementary disclosures (e.g., MD&A) when it is costly for investors to analyze the latter. We show that while disclosure...

This study presents and provides an explanation for a novel stylized fact: both high-performing public companies as well as more troubled companies withhold issuing guidance. We assume that the manager's ability affects the level of earnings and the accuracy of the guidance, but issuing a...

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...