BRAND Journal - A Review of Firms' Voluntary Disclosure Decisions With a Focus on CheapTalk Models

Sheehan Rahman
2017 Figshare  
AbstractThis paper reviews managers' decisions to voluntarily disclose information. The unraveling result is described, which suggests that managers would disclose all information under certain conditions. In particular, the paper focuses on managers' choice of non-verifiable voluntary disclosure in the light of cheap-talk models. Newman and Sansing (1993), Gigler (1994) and Stocken (2000), among others, have attempted to apply Crawford and Sobel's (1982) concept ofcheap-talk models in
more » ... models in disclosure settings. Assuming conditions when there are no apparent costs of misreporting, these studies examined the extent to which managers disclose truthfully and precisely, their incentives for doing so, and the resulting affects on disclosure quality, credibility andmanagerial reputation. Find more at:https://www.edusoft.ro/brain/index.php/brand/article/view/353
doi:10.6084/m9.figshare.5459131 fatcat:yuc7r3beszeb7alkohhnjfhlhm