Take Action

Home | Faculty & Research Overview | Research

Research Details

Disclosure Decisions By Firms and the Competition for Price Efficiency, Journal of Finance

Abstract

This paper develops a model of the relationship between investment decisions by firms and the efficiency of the market prices of their securities. It is shown that more efficient security prices can lead to more efficient investment decisions. This provides firms with the incentive to increase price efficiency by voluntarily disclosing information about the firm. Disclosure decisions are studied. It is shown that firms may expend more resources on disclosure than is socially optimal. This is in contrast to the concern implicit in mandatory disclosure rules that firms will expend too few resources on disclosure.

Type

Article

Author(s)

Michael J. Fishman, Kathleen Hagerty

Date Published

1989

Citations

Fishman, J. Michael, and Kathleen Hagerty. 1989. Disclosure Decisions By Firms and the Competition for Price Efficiency. Journal of Finance. 44(3): 633-646.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action