Mandatory Disclosure, Generation of Decision-Relevant Information, and Market Entry

DC FieldValueLanguage
dc.contributor.authorSchneider, Georg T.
dc.contributor.authorScholze, Andreas
dc.date.accessioned2021-12-23T16:09:56Z-
dc.date.available2021-12-23T16:09:56Z-
dc.date.issued2015
dc.identifier.issn08239150
dc.identifier.urihttps://osnascholar.ub.uni-osnabrueck.de/handle/unios/9066-
dc.description.abstractWe investigate the interaction of mandatory disclosure and the gathering of decision-relevant information in a setting in which a competitor may enter the market. Gathering detailed information allows for an efficient allocation of resources, but eventually attracts competition by revealing beneficial information to competitors. In contrast, refraining from generating detailed information implies inefficient decisions, but eventually prevents competitors from entering the market. Our results show that an incentive not to generate internal information arises for two reasons: If the incumbent's cost advantage is sufficiently large, disclosing aggregated information can be an instrument to avoid competition by reducing the likelihood of market entry. If the incumbent's cost advantage is small, disclosing aggregated information attracts competition by increasing the likelihood of market entry. In this case, imprecise cost information serves as a commitment device to reduce the intensity of competition by forcing the competitor to take into account his efficiency disadvantage in making his production decision.
dc.language.isoen
dc.publisherWILEY-BLACKWELL
dc.relation.ispartofCONTEMPORARY ACCOUNTING RESEARCH
dc.subjectACQUISITION
dc.subjectBusiness & Economics
dc.subjectBusiness, Finance
dc.subjectCOMPETITIVE ADVANTAGE
dc.subjectDISCRETIONARY DISCLOSURE
dc.subjectMANAGERS
dc.subjectPRICE-COST MARGINS
dc.titleMandatory Disclosure, Generation of Decision-Relevant Information, and Market Entry
dc.typejournal article
dc.identifier.doi10.1111/1911-3846.12142
dc.identifier.isiISI:000368431800003
dc.description.volume32
dc.description.issue4
dc.description.startpage1353+
dc.contributor.orcid0000-0001-7301-556X
dc.identifier.eissn19113846
dc.publisher.place111 RIVER ST, HOBOKEN 07030-5774, NJ USA
dcterms.isPartOf.abbreviationContemp. Account. Res.
crisitem.author.netidScAn268-
Show simple item record

Google ScholarTM

Check

Altmetric