Investment implications of information acquisition and leakage

Investment implications of information acquisition and leakage

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Article ID: iaor20041941
Country: United States
Volume: 49
Issue: 6
Start Page Number: 767
End Page Number: 783
Publication Date: Jan 2003
Journal: Management Science
Authors: ,
Keywords: risk, research
Abstract:

This paper studies when a firm will acquire additional information about a potential new project by consulting outsiders, when doing so runs the risk of reducing the value of implementing the project as a consequence of information leakage. The analysis evaluates the firm's information acquisition activities in both the presence and absence of moral hazard in project production.

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