in The Review of Financial Studies
September 2015; p ublished online April 2015 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Intertemporal Choice and Growth; Accounting; Economic Growth and Aggregate Productivity; Corporate Governance. 15617 words.
We develop a theory of income and payout smoothing by firms when insiders know more about income than outside shareholders, but property rights ensure that outsiders can enforce a fair...