Beyond Profits: The Rise of Dual-Purpose Organizations and Its Consequences for Disclosure

• 成果类型: Article
• 署名作者: Arya, Anil; Mittendorf, Brian; Ramanan, Ram N. V.
• 署名单位: University System of Ohio; Ohio State University; State University of New York (SUNY) System; Binghamton University, SUNY
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52166
• 发表日期: 2019
• 页码: 25-43
• 关键词: competition; OWNERSHIP; essays; POLICY

摘要

Organizations with a mission that extends beyond profit to achieve broader objectives are becoming increasingly common. This paper studies such hybrid entities-firms that value the profits they generate, as well as the utility they provide to customers-and details their implications for industry disclosure practices. The findings demonstrate that disclosure incentives are perturbed not just from being a hybrid entity, but also from competing with such entities. Accounting for both competitive and disclosure effects, the paper then assesses the circumstances under which a hybrid firm is economically viable and derives the ensuing equilibrium industry composition. As such, we show that the presence of firms with objectives beyond profit can be an endogenous characteristic of many industries.