Firm Boundaries and Voluntary Disclosure

We study how vertical firm boundaries shape firms' public disclosures. Theory suggests that firms can use public disclosure to coordinate with supply chain partners, and predicts a substitutive relation between vertical integration and public disclosure about future strategic plans, as vertical integration reduces the need to coordinate via public disclosure. Using data on the extent to which firms are vertically integrated, we find that firms that become more vertically integrated reduce their public disclosure about their product strategies, and that the reduction is most pronounced for vertically integrating firms with the largest informational and strategic frictions along the supply chain