Corporate Strategy and Information Disclosure

Posted: 7 Mar 2006 Last revised: 15 May 2008

See all articles by Daniel Ferreira

Daniel Ferreira

London School of Economics - Department of Finance; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)

Marcelo Rezende

Board of Governors of the Federal Reserve System

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We examine voluntary disclosures of information about corporate strategies. We develop a model in which managers choose whether to reveal their strategic plans only to some partners of the firm or also to the outside world. We show that managers face a tradeoff when deciding whether to disclose their private information to outsiders. On the one hand, by disclosing their intentions, managers become reluctant to change their minds in the future. This may lead them to make inefficient project implementation decisions. On the other hand, information disclosure about corporate strategy provides strong incentives for partners of the firm to undertake strategy-specific investments.

Keywords: Corporate Strategy, Disclosure, Commitment, Public Announcements, Managerial Intentions

JEL Classification: M41, M45, J24, G31

Suggested Citation

Ferreira, Daniel and Rezende, Marcelo, Corporate Strategy and Information Disclosure. RAND Journal of Economics, Vol. 38, No. 1, pp. 164-184, Spring 2007 , Available at SSRN: or

Daniel Ferreira (Contact Author)

London School of Economics - Department of Finance ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
(+44) 20 7955 7544 (Phone)


European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels


Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

Marcelo Rezende

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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