How can features of the markets for audit and nonaudit services (NAS) affect an audit firm's incentives to invest in audit quality, average audit quality, and social welfare? We address these questions in a model focusing on competition in both audit and NAS markets. We show that, when audit and...

This paper uses holdings and outage data from Robinhood and transaction-level data from U.S. exchanges to examine how retail investors affect the pricing of public earnings information. We find that retail trader activity is associated with prices that are more responsive to earnings surprises,...

We examine how disclosure impacts monitoring spillovers between competing passive and active funds. In our model, funds use fees and monitoring capacities to compete with each other over fund flows from a set of heterogeneous risk-averse investors. We provide conditions for when passive and...

Building on archival, anecdotal, and survey evidence on managers' roles in accounting manipulations, I develop an agency model to examine the effects of a CEO's power to pressure a CFO to bias a performance measure, like earnings. This power has implications for incentive compensation, reporting...

I present a critique on the common assumption of fixed proprietary costs of disclosure used in discretionary disclosure models. I show that proprietary costs that are fixed, i.e., independent of the disclosed information, are inherently contradictory. To sustain independence requires either that...

We examine the relation between organization capital (OC) and information asymmetry manifested in insider trading profits. Risky payoffs from OC investments can create private information, but OC is also associated with management practices that lower agency problems. Empirically, we find that...

Firms and jurisdictions worldwide are adopting ESG reporting in various forms. To better understand potential implications of ESG reporting, we develop a model in which a firm provides ESG and financial reports to investors. Investors price the firm's stock, and stock prices provide both real...

We study investors’ demand for climate-related corporate information around a high-level government announcement regarding the transition to a low-carbon economy, using China’s interactive investor platforms, where investors can submit questions directly to firms. Following the announcement...