Abstract
This paper examines managers' strategic use of financial disclosure in labor negotiations. Using the exogenous expiration date of collective bargaining contracts, I find that when wage negotiations are imminent, firms strategically redact information about material agreements. Strategic redaction is pronounced when unions cannot accurately predict firms' prospects, when firms have low growth opportunities, when liquidity is less constrained, and when the estimated cost of a work stoppage is low. These results suggest that firms strategically withhold information to balance the costs and benefits of information asymmetry. Consistent with this interpretation, strategic disclosure is statistically uncorrelated to ex post performance.
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