Abstract:
Asymmetric information is an issue with which deal each manager. Sometimes each manager face the situation when he/she has more information than the shareholders. Some information could cause that the shareholders could leave the company and it could cause this company big problems. In this situation the manager has to decide it he/she share this information with shareholders or if he/she doesn’t share and will try to solve that problem before someone find out. If the manager is doesn’t share particular information he/she has to know that there could be some consequences – losing job, paying penalties or being suit. This article studies decision making of one manager and how he deals with the situation when he has to decide if he reveals all information or not. This whole situation was described in the case study and decision-making task was graphically illustrated by a decision tree. This decision tree is solved for fictitious manager in one firm. This fictitious manager deals with a problem, if he conceals important information or not. His decision was solved with decision tree method and the solutions of his situation is, that he should not conceal any information because of consequences.
