Trading in a secondary stock market not only redistributes wealth among investors but also generates information that guides subsequent investment. We provide a positive theory of disclosure that reflects both functions of a secondary market. By making private information public, disclosure...

This paper explores corporate disclosure in a dynamic oligopoly setting. In each period, a firm receives a signal on market size and must decide whether or not to publicly disclose the information before engaging in price competition in the product market. The main insight here is that firms'...

In this paper we investigate the effectiveness of imposing scrutiny to fight firms' information garbling. We study a setting in which both firms with good and bad projects are able to influence the informativeness of a public signal regarding their project types through unobservable efforts, and...