Enforcement and Managers’ Collective Preference Toward Mandatory Disclosure

摘要: This paper examines the relation between enforcement and managers' collective preference toward mandatory disclosure. In model, informed managers collectively determine disclosure threshold of an asymmetric rule that becomes for all firms. Thereby, focus on maximizing their firms' short-term market price. We relax conventional assumption perfect face a positive probability non-compliant behavior remains undetected while detection leads to regulatory penalty depending severity misconduct. The analysis model shows enforcement, apart from inducing compliant behavior, aligns preferences low high quality firms if still have incentives be non-compliant. this case, withhold private information forming coalition with advocating more extensive rules affect Based finding, tighter results in largely persists when voluntary are endogenously determined.