A good type can separate itself from a bad type by giving a costly signal; the bad type will not mimic because the signal is costlier for the bad type. A good type can also separate itself from a bad type by attracting scrutiny; the bad type will not mimic because the bad type will not risk attracting scrutiny and being discovered. The contribution of this paper is to develop a simple model to ...

We study the choice of disclosure and share repurchase strategies of informed managers. Using a model that captures how direct disclosures and share repurchases differentially impact short and long-term stock value, we ask when will they choose disclosure, or repurchases, or both. We find that both direct disclosure and share repurchase policies emerge in equilibrium in different regions of fir...