A taxonomy of disclosure policies

Varda Yaari

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


The disclosure policy of the firm defines the relationship between the actual outcome and the reported outcome. This paper offers a taxonomy of disclosur policies by analyzing the Nash equilibrium contract of the owner and the manager. The variety among firms is explained by different combinations (of preferences) of owner-manager pairings. When the owner's aversion to risk changes more slowly (quickly) than the manager's, the firm is a smoother (a maximizer). The firm tells the truth only the owner's and the manager's preferences behave the same.

Original languageEnglish
Pages (from-to)361-374
Number of pages14
JournalJournal of Economics and Business
Issue number5
StatePublished - 1 Jan 1993

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics


Dive into the research topics of 'A taxonomy of disclosure policies'. Together they form a unique fingerprint.

Cite this