Ball and Shivakumar (2008) suggest mandatory periodic reporting disciplines disclosure and encourages timely voluntary disclosure. We examine this hypothesis using the shock to reporting quality experienced by former Arthur Andersen clients after they were forced to switch auditors. Consistent with the confirmatory role of mandatory reporting, we find that former Andersen clients increase discl...

We examine the incentives for firms to voluntarily disclose otherwise private information about the quality attributes of their products. In particular, we focus on the case of differentiated products with multiple attributes and heterogeneous consumers. We show that there exist certain configurations of consumers’ multi-dimensional preferences under which a firm, no matter whether producing a ...

We examine the incentives for firms to voluntarily disclose otherwise private information about the quality attributes of their products. In particular, we focus on the case of differentiated products with multiple attributes and heterogeneous consumers. We show that there exist certain configurations of consumers’ multi-dimensional preferences under which a firm, no matter whether producing a ...

Market outcomes depend on the quality of information available to its participants. We measure the effect of information disclosure on market outcomes using a large-scale field experiment that randomly discloses information about quality in wholesale automobile auctions. As the theoretical literature predicts, information disclosure increases expected revenues. However, in contrast with convent...

This paper uses a disclosure policy, the Nursing Home Quality Initiative, which mandates the public reporting of quality information on selected dimensions, to investigate the theories of nonprofits. My main finding is that nonprofits are as responsive as for-profits to quality disclosure: quality improves along the disclosed dimensions and diminishes along the less disclosed ones. I also find ...

This study investigates risk factor disclosures under the voluntary, incentive-based disclosure regime provided by the safe harbor provision of the Private Securities Litigation Reform Act and the SEC’s subsequent disclosure mandate. Firms subject to greater litigation risk disclose more risk factors, update the language more from year-to-year, and use more readable language than firms with low...

Consumers may infer a policy maker’s private information about relevant economic variables from its policy choice. I study this inference effect and its policy implications in the context of mandatory product content disclosure. I find that mandatory disclosure does not always benefit consumers. For example, by observing the government’s requirement to label genetically modified organisms (GMOs...

As consumers rely on online customer reviews to assess the quality of products, firms often try to manipulate the reviews to attract consumers. If review sites fail to maintain reliability, firms are less likely to be motivated in improving quality of products. To alleviate fakery, online review providers have designed several identity disclosure mechanisms. The purpose of this research is to e...

Disclosing vulnerabilities in a timely fashion is a real and ever more important policy question. Late disclosure reduces the time window that customers are exposed to attacks, but decreases vendor’s willingness to deliver quick patch. Currently, there is little or no guidance with each organization following it own ad-hoc policy. This paper is to demonstrate how through optimal timing of discl...