Disclosure Policies with Multiple Users.

The article focuses on the usefulness of a firm's disclosure when there are multiple users with different agendas. This is complicated by the firm's control over disclosure content. The authors model the interactions among three hypothetical parties: an Incumbent, which represents a public firm, an Entrant, and a representative stockholder. They conclude that disclosure information is often deliberately misleading and advocate a greater role for the U.S. Securities and Exchange Commission to monitor the truthfulness of disclosures.