FRIC/Finance Seminar with Philip Bond, Foster School of Business, University of Washington
The Department of Finance and FRIC, Center for Financial Frictions, are proud to announce the upcoming online seminar with Philip Bond, Foster School of Business, University of Washington.
Philip Bond will present:
Silence is safest: information disclosure when the audience’s preferences are uncertain
ABSTRACT
We examine voluntary disclosure decisions when firms are uncertain about audience preferences, and risk averse. In contrast to classic “unraveling” results, some firms remain silent in equilibrium. Silence is safer than disclosure; silence reduces the sensitivity of a firm’s payoff to audience preferences. Increases in firm (audience) risk-aversion reduce (increase) disclosure. Our model explains why some firms do not disclose earnings breakdowns, executive compensation, and ratings when they face diverse audiences; and why they disclose less under regulatory rules mandating that disclosure be entirely public.
Location and sign up:
This is an online seminar.
Please contact us in order to sign up.