Which of the following reasons does not explain managerial optimism in reporting? Select one:

a. Most managers are genuinely positive about their firms prospects, leading them to unwittingly emphasise the positive and downplay the negative.

b. Business disclosures play an important role in mitigating agency problems between managers and investors.

c. Faithful representation of financial information

d. Managers are also likely to make optimistic disclosures prior to issuing new equity