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Limited attention, information disclosure, and financial reporting
2003
Journal of Accounting & Economics
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This paper models firms' choices between alternative means of presenting information, and the effects of different presentations on market prices when investors have limited attention and processing power. In a market equilibrium with partially attentive investors, we examine the effects of alternative: levels of discretion in pro forma earnings disclosure, methods of accounting for employee option compensation, and degrees of aggregation in reporting. Abstract This paper models firms' choices
doi:10.1016/j.jacceco.2003.10.002
fatcat:ntv3lgvdznd4hjqb6gnbmpiglm