Edmans, Alex; Heinle, Mirko; Huang, Chong - C.E.P.R. Discussion Papers - 2013
This paper models the effect of disclosure on real investment. We show that, even if the act of disclosure is costless … cutting investment. Investment depends on asset pricing variables such as investors' liquidity shocks; disclosure depends (non … optimal to induce investment, the manager may be unable to commit to it. If hard information turns out to be good, he will …