Business, Management and Accounting
8 years ago

Corporate strategy disclosure boosts partner investments but hinders flexibility, study finds.

SSRN Electronic Journal
Corporate Strategy and Information Disclosure
Daniel Ferreira, Marcelo Rezende

Paper Summary

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The article explores why companies choose to share their strategic plans with others. It suggests that when managers decide to disclose their strategies, they may feel pressured to stick to those plans even if they're not the best choice. However, sharing this information can encourage partners to invest in projects that align with the company's goals.