Informational correlation and selective disclosure

B-Tier
Journal: Economic Theory
Year: 2023
Volume: 76
Issue: 2
Pages: 645-683

Authors (3)

Qiang Gong (not in RePEc) Jie Shuai (Zhongnan University of Economi...) Huanxing Yang (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We study a voluntary disclosure game in which a firm manager may learn private information about multiple aspects and can selectively disclose any subset of that information. A distinctive feature of our model is informational correlation: whether the manager is informed about one aspect is correlated with whether he is informed about the other aspect. We find that higher positive informational correlation makes partial disclosure less likely and reduces the firm’s perceived value under partial disclosure, whereas higher negative informational correlation leads to opposite effects. We also examine the implications of our results on stock prices.

Technical Details

RePEc Handle
repec:spr:joecth:v:76:y:2023:i:2:d:10.1007_s00199-022-01473-x
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29