Major periods of regulatory, institutional and economic upheaval can have significant impacts on firms. They to mediate resulting uncertainties, but where such actions are geographically uneven as firms respond in different ways. Actors construct mental representations a future reality based existing understandings situation, which seeks influence guide other actors, termed ‘fictional expectati...

In this paper, I discuss financial reporting under economic policy uncertainty. This paper is one of the first papers to relate uncertainty behaviour. It identifies link between and in terms earnings management fair value accounting. argues that high will transmit fewer new information firms which can motivate managers influence accounting numbers direction desired outcome. The discussion adds ...

We introduce this special issue on Economic Policy Uncertainty (EPU) with a focus how EPU affects allocative efficiency. observe that the market value of firms in about 37% Fama–French 30 industries, but leads to lower investments 90% them. Allocation decisions economy rely signals from capital market, which distorts. This may cause increasing conflicts interest between managers and investors. ...

Global games and Poisson games have been proposed to address equilibrium indeterminacy in Common Knowledge Coordination games, where fundamentals are commonly known by all players. Global games assume that agents face idiosyncratic uncertainty about economic fundamentals, whereas Poisson games model the number of actual players as a Poisson random variable to capture population uncertainty in l...