How Can Firms Use Disclosure as Business Strategy
Featuring (Ram) N.V. Ramanan
A study shows how firms under regulatory or competitive pressure can use disclosures to outmanoeuvre threats.
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(Ram) N.V. Ramanan
Associate Professor of Accounting. His research focuses on the role of accounting in management decisions. Specifically, he examines the incentive effects of financial reports and disclosures on various managerial decisions within organisation and supply chains.
Key Takeaways
- Companies may accept weakness on one front if it brings greater strength on another, using disclosures strategically to achieve this.
- These decisions may appear self-sabotaging but are often meant to influence certain parties to the firm’s advantage.
- Self-sabotage may involve sharing good news or hiding bad, both rational when multiple stakeholders engage with the firm based on the information it presents.