Peer effect of proprietary information: A cost-benefit analysis of customer information disclosure
Document Type
Article
Publication Date
7-1-2023
Abstract
This study examines how industry peer firms' information disclosures affect firms' customer disclosure. Using samples of Chinese A-share companies from 2007 to 2019, our results show the following: first, the peer firms' customer disclosures have a positive and significant effect on firms' customer disclosures. The results remain robust after the instrumental variable alleviates the endogeneity problem. Second, firms refer to peer firms' disclosure decisions only when it is difficult to weigh the disclosure benefits and costs. Third, firms tend to imitate the disclosure decisions of industry leaders. The cost-benefit hypothesis of proprietary information disclosure proposed in this study contributes to the literature.
Divisions
advanced,Faculty_of_Business_and_Accountancy
Publication Title
Managerial and Decision Economics
Volume
44
Issue
5
Publisher
Wiley
Publisher Location
THE ATRIUM, SOUTHERN GATE, CHICHESTER PO19 8SQ, W SUSSEX, ENGLAND