Value and optimal timing of managerial accounting information in a multiperiod setting with learning

This research examines the value of reports in a multiperiod setting with learning. It is shown that learning from reports can make the principal and the agent better off if learning is public or if learning is private and communication between the principal and agent is available. This research also extends the agency model to the situation where the reporting intervals are determined endogenously. The optimal reporting interval maximizes marginal expected utility in the current period and remaining periods, which is affected by the current interval decision. General characteristics of the contract hold, but are adjusted by the effect of interval on the marginal utility. In addition, this research examines whether an early report is more valuable than a late report. It is also found that an early report is more valuable than a late report.