We study how leaks affect a firm's communication decisions and real efficiency. A privately informed manager strategically chooses both public disclosure and internal communication to employees. Public disclosure is noisy, but in the absence of leaks, internal communication is perfectly...

Why do firms engage in costly, voluntary disclosure of informationwhich is subsumed by a later announcement? We consider a model inwhich the firm's manager can choose to disclose short-term informationwhich becomes redundant later. When disclosure costs are sufficientlylow, the manager discloses...