Baranchuk, Nina; Dybvig, Philip H.; Yang, Jun - In: Journal of Economic Theory 145 (2010) 5, pp. 1805-1836
Disclosure by firms would seem to reduce investment inefficiency by reducing informational asymmetry. However, the impact of disclosure is endogenous and depends on incentives within the firm. Given optimal renegotiation-proof contracts, disclosing only accepted contracts does not solve the...