Research Seminar by professor Aytekin ERTAN

Department : Accounting and Management Control

Speaker : Aytekin ERTAN (London Business School)

Room : Building V Ramanantsoa and by Zoom : https://hec-fr.zoom.us/j/92516148648

“Now You See it, Now You Don’t: Balancing Reputation and Competitive Concerns in Suppliers’ Identities Disclosure∗”

Abstract:

This paper examines how firms strategically manage supplier transparency across two distinct disclosure layers: public corporate communications and shipping records. Leveraging trade-level data that capture a broad set of underlying supplier relationships, including many omitted from public disclosures, we quantify the extent to which firms selectively highlight suppliers with reputational appeal in public communications over those with greater operational relevance. This bias is more pronounced among firms engaged in brand management and is associated with greater pricing power. In contrast, concealment in shipping records is more common in concentrated and strategically competitive industries, where proprietary risks are more salient. Taken together, the findings show that firms adopt audience-contingent disclosure strategies, emphasizing reputational value in public communications while concealing operationally important relationships in contexts where competitive exposure poses greater risk.