Negative accruals reverse when the threat is resolved.  Incumbents manage earnings more aggressively when costs are small and benefits are large.  Such strategic disclosure lowers incumbent firm valuation multiples and associates with more negative IPO firm media sentiment.  IPO firms obtain lower offer prices, raise less capital, and are more likely to withdraw from the offering. They also invest less, hoard more cash, and experience lower profitability post IPO, while incumbents experience higher profitability and market share growth. Our results highlight the role of strategic reporting on product market competition and identify a new cost of going public.