Firm Boundaries and Voluntary Disclosure

51 Pages Posted: 30 Jan 2022 Last revised: 4 Apr 2022

See all articles by Thomas Bourveau

Thomas Bourveau

Columbia University - Columbia Business School, Accounting, Business Law & Taxation

John D. Kepler

Stanford Graduate School of Business

Guoman She

The University of Hong Kong - Faculty of Business and Economics

Lynn Linghuan Wang

The University of Hong Kong

Date Written: April 4, 2022

Abstract

We study how firms' boundaries shape their public disclosures. Theories at the intersection of accounting and economics suggest that firms can use public disclosure to coordinate credibly with supply chain partners, and predict that more vertically integrated firms provide less public disclosure about their future business plans. Using data on the extent to which firms are vertically integrated, we find that those firms that become more vertically integrated reduce their public disclosure about their products, and that such disclosures help mitigate informational and strategic frictions along the supply chain.

Keywords: Firm Boundaries, Vertical Integration, Product Disclosure, Coordination Role of Disclosure

JEL Classification: D83, G14, L14, M41

Suggested Citation

Bourveau, Thomas and Kepler, John and She, Guoman and Wang, Lynn Linghuan, Firm Boundaries and Voluntary Disclosure (April 4, 2022). Columbia Business School Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=4019607 or http://dx.doi.org/10.2139/ssrn.4019607

Thomas Bourveau

Columbia University - Columbia Business School, Accounting, Business Law & Taxation ( email )

3022 Broadway
New York, NY 10027
United States

John Kepler (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

Guoman She

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Lynn Linghuan Wang

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

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