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AbstractAs the cost of financial information dissemination continues to decline, investors, firms, and regulators are gradually adopting the principle of fair disclosure, which requires no preferential public disclosure. We use a simple model to examine the impact of this change on information acquisition with two alternative assumptions: (1) Investors have symmetric awareness about the underlying uncertainties, or (2) this awareness is asymmetric among them. Under the first assumption, the change reduces information asymmetry among investors and induces acquisition of high-quality information. Under the second assumption, however, the reduction of information asymmetry may be limited, and information acquisition is either reduced or less efficient. Specifically, investors with high awareness may either acquire high-quality information at a higher cost or not acquire it; investors with low awareness only acquire low-quality information. The loss in overall information quality is greater when awareness asymmetry is moderate than when it is high or low; this causes information asymmetry between the insiders and outside investors as a whole. These results offer explanations for intriguing empirical findings regarding the effect of a recent accounting regulation (Regulation Fair Disclosure).

By revisiting the classic dirty-face problem we highlight the notion of `unawareness' (a simpler state space) and compare it with `impreciseness' (a coarser information partition). The outcomes are derived with various information structures. That allows us to 1) demonstrate a model of differing interpretations of public information using asymmetric awareness; 2) compare and contrast the impact of unawareness and impreciseness on learning; 3) analyze the value of awareness and the value of preciseness; and 4) demonstrate the effect of unawareness and impreciseness on information revelation with indirect aggregation.

This paper addresses the association between earnings management and economic value added (EVA) among nations of the North American Free Trade Agreement (NAFTA), Association of Southeast Asian Nations (ASEAN), European Union (EU), and those classified as a newly industrialized country (NIC). Furthermore, an analysis of the earnings management behaviour is presented based on data from 2009 to 2013. The results indicated that a significantly inverse relationship exists between earnings management through either discretionary accruals (DAs) or real earnings management (REM) activities and EVA in NAFTA and EU nations. Moreover, a significantly positive relationship exists between earnings management through either DAs or REM and EVA in ASEAN and NIC nations. In addition, REM activities exhibit greater explanatory power among these nations.

Using the 2009 to 2012 waves of the High School Longitudinal Survey, this article examines the role of parental engagement in academic achievement in the United States. Specifically, we examine the influence of parental engagement while also investigating the academic trajectories of racial/ethnic and immigrant groups, controlling for other standard factors. Results suggest that the progression of students' academic performance varies substantially by race/ethnicity and by immigrant generational status. After controlling for ninth-grade test scores and family and other school-level characteristics, we find that first-generation immigrant youth generally have higher eleventh-grade test scores and lower probability of dropping out compared to native-born students who are second or third generation. Greater levels of parental engagement predict superior test scores and lower rates of dropout for youth of various racial and immigrant generation backgrounds, even in the presence of a variety of controls.