Corporate Disclosure as a Tacit Coordination Mechanism: Evidence from Cartel Enforcement Regulations
Thomas Bourveau Guoman She Alminas  Zaldokas
This version: February 2020 - First version: October 2016
JAR

Abstract
We empirically study how collusion in product markets affects firms’ financial disclosure
strategies. We find that after a rise in cartel enforcement, U.S. firms start sharing
more detailed information in their financial disclosure about their customers, contracts,
and products. This new information potentially benefits peers by helping to tacitly
coordinate actions in product markets. Indeed, changes in disclosure are associated
with higher future profitability. Our results highlight the potential conflict between
securities and antitrust regulations.