Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 16, 2021 erstellt
Beschreibung:
We develop a model of voluntary disclosure in the presence of diversely-informed investors. The manager's disclosure strategy influences trading by investors, which in turn affects the manager's incentives to disclose. We document conditions under which there exists a unique equilibrium where the manager discloses only sufficiently favorable news. This equilibrium exhibits two novel features. First, the firm is either over- or under-valued relative to fundamentals, depending on the likelihood the manager is informed and the cost of disclosure. Second, contrary to common intuition, mandatory disclosure can increase managers’ incentives to provide voluntary disclosures