...; disclosure; Bayesian persuasion; downside risk; accounting conservatism. I. INTRODUCTION E xtensive evidence suggests that noise trading affects stock prices. The extent to which noise traders demands impact prices depends upon the risk that other market participants perceive when absorbing these demands...

...Beatrice Michaeli ABSTRACT This paper develops a Bayesian persuasion model that examines a manager's incentives to gather information when the manager can disseminate this information selectively to interested parties (“users”) and when the objectives of the manager and the users are not perfectly...