Acquisition and Disclosure of Operational Information

摘要: We study a firm's strategy for acquisition and disclosure of operational information by establishing linkages among quality, managerial self-interest, production planning. develop multistage model in which manager publicly traded firm first receives private about the product demand then uses it to make decisions. consider two prevalent models employed accounting literature: all-or-nothing cheap-talk models. In model, is assumed that any must be truthful, but can strategically withhold information. show commits acquire value-added if (i) self-interest interim share price low or (ii) high, fixed cost either sufficiently high. demonstrate better off level observable financial market because multidimensional signaling reduces costs. we assume manager's may not truthful. incentive increases along with penalty misleading investors. Therefore, high investors encourage obtain more precise information, turn improves cash flow.