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Department of Business Administration

How Financial Disclosure Policies Impact Firms' Innovation Strategies

A study from the University of Zürich and Carnegie Mellon University examines how financial disclosure policies influence firms' innovation strategies. The research suggests that allowing companies to keep early failures private can encourage more experimentation, leading to greater long-term success. The study highlights that early mandatory disclosure might hinder innovation by discouraging risky but potentially rewarding new methods. This insight is crucial for shaping policies that foster innovation in various industries.

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