Dynamic Information Acquisition, Investment, and Disclosure
Journal of Accounting Research · 2025 · Volume 63 · Issue 4
Abstract
We present a dynamic model of information acquisition and disclosure. The manager seeks to maximize future stock prices and collects information privately about the firm's fundamentals. Information acquisition increases the arrival rate of private information. The manager can choose to disclose his private information or withhold it in perpetuity. We study the impact of information acquisition on the accumulation of private information, disclosure, and the firm's initial investment.
Keywords
voluntary disclosure, information acquisition, investment, learning
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