9:00 AM to 11:15 AM: Costly Disclosures in Market Settings
Strategic Mandatory Disclosure
Illustrative Problem: Shooting Yourself in the Foot (or Not?)
Paper: Fischer, P. and R. Verrecchia, “Reporting Bias,” The Accounting Review, 2000.
Strategic Voluntary Disclosure
Illustrative Problem: Unraveling the Unraveling
Papers: Verrecchia, R., “Discretionary Disclosure,” Journal of Accounting and Economics, 1983.
Dye, R., “Disclosure of Nonproprietary Information,” Journal of Accounting Research, 1985.
Jung, W.O. and Y.K. Kwon, ”Disclosure When the Market is Unsure of Information Endowment of Managers,” Journal of Accounting Research, 1989.
11:30 AM to 2:30 PM: Lunch and Problems
Strategic Mandatory Disclosure In the Presence of Forecasts
Problem: Are Forecasts Innocuous?
Paper: Fischer, P. and P. Stocken, “The Effect of Speculation on Earnings Management and Investor Information,” Journal of Accounting Research, 2004.
Heuristic Behavior and Disclosure
Problem: Endogenous Puffing
Papers: Fischer P. and R. Verrecchia, “Disclosure Bias,” Journal of Accounting and Economics, 2004.
2:30 PM to 4:00 PM: Discussion of Papers/Problems
4:00 PM to 5:00 PM: Cheap Talk in Market Settings (continues on Day 3)
Problem: Cheap Talk Illustrative Problem
Papers: Farrell, J. and M. Rabin, “Cheap Talk,” The Journal of Economic Perspectives, 1996.
