Optimal Imprecision and Ignorance (2001)
Chandra Kanodia, Rajdeep Singh, Andrew Spero
Firms often make investment choices in the light of profitability information unknown to the capital market, and accounting measurements of investment are invariably imprecise. We examine how the...
Thesis (Ph. D.)--Carnegie Mellon University, 1978.
Thesis (Ph.D.)--Carnegie-Mellon University, 1978.
Imprecision in Accounting Measurement: Can It Be Value Enhancing?
CHANDRA KANODIA, RAJDEEP SINGH, ANDREW E. SPERO
Accounting measurements of firms' investments are usually imprecise. We study the economic consequences of such imprecision when it interacts with information asymmetry regarding an investment...
Information Transparency and Coordination Failure: Theory and Experiment
REGINA M. ANCTIL, JOHN DICKHAUT, CHANDRA KANODIA, BRIAN SHAPIRO
We examine the effect of higher order beliefs on the ability of decentralized decision makers to coordinate and take advantage of improvements in information transparency that can increase welfare....
Should Intangibles Be Measured: What Are the Economic Trade-Offs?
CHANDRA KANODIA, HARESH SAPRA, RAGHU VENUGOPALAN
We investigate whether a firm's intangible investments should be measured and separated from operating expenses. We find that the information extracted from accounting reports of investments and...
FRANK GIGLER, CHANDRA KANODIA, RAGHU VENUGOPALAN
ABSTRACTWe examine how outsiders rationally interpret a reported loss on derivatives when the application of mark-to-market accounting to cash flow hedges creates a mixed attribute problem. We find...
The role of information asymmetry in escalation phenomena: Empirical evidence
Berg, Joyce E., Dickhaut, John W., Kanodia, Chandra
Economic rationality dictates that only incremental costs and benefits should affect decisions. Observed behavior often seems to violate this principle, resulting in unwarranted commitment to past...
Accounting Conservatism and the Efficiency of Debt Contracts
FRANK GIGLER, CHANDRA KANODIA, HARESH SAPRA, RAGHU VENUGOPALAN
ABSTRACTIn this paper we examine how accounting conservatism affects the efficiency of debt contracting. We develop the statistical and informational properties of accounting reports under varying...