Not Only What but Also When: A Theory of Dynamic Voluntary Disclosure
AbstractWe study a dynamic strategic model of voluntary disclosure of multiple pieces of information. Such situations are prevalent in real life, e.g., in corporate disclosure environments that are characterized by information asymmetry between the firm and the capital market with respect to whether, when, and what private information the firm has learned. We show (perhaps surprisingly) that due to dynamic strategic interaction between the firm and the capital market later disclosures are interpreted more favorably. We also provide sufficient conditions for the equilibrium to be in threshold strategies.
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Bibliographic InfoPaper provided by Stanford University, Graduate School of Business in its series Research Papers with number 2102.
Date of creation: Apr 2012
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
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