On the synergy between disclosure and investment beauty contests

• 成果类型: Article
• 署名作者: Arya, Anil; Mittendorf, Brian
• 署名单位: University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2015.11.003
• 发表日期: 2016
• 关键词: actually pro-transparency; social value; public information; shin 2002; essays; morris

摘要

Many investments are noted for their beauty contest features in that decision makers desire conformity with others' choices due to inherent complementarities. This paper examines the incentives of firms to take preemptive action and publicly disclose their investments in such beauty contests. In this case, it is the beauty contest desire for coordination that incentivizes a firm to disclose because doing so allows it to convey information that establishes norms and thereby influence subsequent actions of others. Disclosure recipients too benefit from this arrangement because they access additional information on which to base their decisions. (C) 2015 Elsevier B.V. All rights reserved.