Please use this identifier to cite or link to this item:
Disclosure of Investment Information in Multiple Markets
|Title:||Disclosure of Investment Information in Multiple Markets|
|Date Issued:||28 Aug 2019|
|Abstract:||We study the effect of disclosure on firms' investment decisions when a firm competes with an identical competitor in (two) multiple markets and with limited investment resources. We focus on the case where the information disclosure environment may differ by each market. Consistent with previous research in a single Cournot competition, our results show that firms exert more aggressive investments under disclosure than under nondisclosure in symmetric disclosure environments. Our results also show, however, that firms exert less aggressive investments in a disclosure market than in a nondisclosure market if each market has an asymmetric disclosure environment. This stems from the fact that firms must concentrate their limited investment resources on a less competitive market, and multimarket contact allows firms to predict rival firm's competitive behavior.|
|Appears in Collections:||
16 Management Accounting: Cost Behavior and Other Management Accounting Issues|
Please email firstname.lastname@example.org if you need this content in ADA-compliant format.
Items in ScholarSpace are protected by copyright, with all rights reserved, unless otherwise indicated.