Delaney, Laura and Thijssen, Jacco Johan Jacob orcid.org/0000-0001-6207-5647 (2015) The impact of voluntary disclosure on a firm’s investment policy. European Journal of Operational Research. pp. 232-242. ISSN 0377-2217
Abstract
In this paper we provide a model which describes how voluntary disclosure impacts on the timing of a firm’s investment decisions. A manager chooses a time to invest in a project and a time to disclose the investment return in order to maximise his monetary payoff. We assume that this payoff is linked to the level of the firm’s stock price. Prior to investing, the profitability of the project and the market reaction to the disclosure of the investment return are uncertain, but the manager receives signals at random points in time which assist in resolving some of this uncertainty. We find that a manager whose objective can only be achieved through voluntarily disclosing the return is motivated to invest at a time that would be sub-optimal for an identical manager with a profit maximising objective.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2014 Elsevier B.V. All rights reserved. This is an author produced version of a paper published in European Journal of Operational Research. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > The York Management School |
Depositing User: | Pure (York) |
Date Deposited: | 23 Dec 2015 13:10 |
Last Modified: | 23 Jan 2025 00:06 |
Published Version: | https://doi.org/10.1016/j.ejor.2014.09.047 |
Status: | Published |
Refereed: | Yes |
Identification Number: | 10.1016/j.ejor.2014.09.047 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:93106 |
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