Private Communication among Competitors and Public Disclosure
56 Pages Posted: 12 Nov 2018 Last revised: 14 Jan 2021
Date Written: January 14, 2021
I study how private communication among competitors affects their public disclosures. Theory suggests that competing firms can use public disclosure to coordinate, and predicts less public disclosure when there is more private communication. Using data on strategic alliances, I predict and find that firms that enter strategic alliances with competitors reduce their public disclosure, and that the reduction is more pronounced for alliances that allow for more private communication.
Keywords: private communication, public disclosure, strategic alliances, coordination role of disclosure
JEL Classification: D83, G14, L14, M41
Suggested Citation: Suggested Citation