To Redact or Not to Redact?

28 Pages Posted: 6 Apr 2022 Last revised: 27 Apr 2022

Date Written: February 18, 2022


This study shows that firms respond to their product-market peers’ decisions of redacting information using a large sample of confidential treatment orders that are mandatorily filed to redact information. I find evidence that firms increase their confidential treatment orders, but not other voluntary disclosures, in response to peers' decisions of redacting information. I also find that firms do not alter their earnings management and their analyst information production does not respond to peer firms’ confidential treatment orders. These findings confirm that a firm's action of redacting proprietary information crowds in another firm's redaction in disclosure. Last, I find that peer firms may benefit from information spillover in the focal firm's confidential treatment order; therefore, peer firms may strategically file confidential treatment orders to trigger a focal firm's confidential treatment order.

Keywords: Redaction, Mandatory Disclosure, Voluntary Disclosure, Information Spillover, Information Environments

JEL Classification: D82, G14, G30, G38, M41

Suggested Citation

Kim, Jae Hyoung, To Redact or Not to Redact? (February 18, 2022). Swedish House of Finance Research Paper No. 22-12, Available at SSRN: or

Jae Hyoung Kim (Contact Author)

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

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