The Journal of Finance

The Journal of Finance publishes leading research across all the major fields of finance. It is one of the most widely cited journals in academic finance, and in all of economics. Each of the six issues per year reaches over 8,000 academics, finance professionals, libraries, and government and financial institutions around the world. The journal is the official publication of The American Finance Association, the premier academic organization devoted to the study and promotion of knowledge about financial economics.

AFA members can log in to view full-text articles below.

Current Issue:

Volume 79: Issue 3 (June 2024)

Top 25 Recent Articles

Top 50 Articles of All Time

View past issues

Search the Journal of Finance:






Search results: 1.

Disclosure Decisions by Firms and the Competition for Price Efficiency

Published: 07/01/1989   |   DOI: 10.1111/j.1540-6261.1989.tb04382.x

MICHAEL J. FISHMAN, KATHLEEN M. HAGERTY

This paper develops a model of the relationship between investment decisions by firms and the efficiency of the market prices of their securities. It is shown that more efficient security prices can lead to more efficient investment decisions. This provides firms with the incentive to increase price efficiency by voluntarily disclosing information about the firm. Disclosure decisions are studied. It is shown that firms may expend more resources on disclosure than is socially optimal. This is in contrast to the concern implicit in mandatory disclosure rules that firms will expend too few resources on disclosure.

  View PDF     Read article online