R2 and the Economy
The characterization of firm-specific return volatility as the intensity with which firm-specific events occur reconciles many seemingly discordant results. A functionally efficient stock market allocates capital to its highest value uses, which often amounts to financing Schumpeterian creative destruction, wherein creative winner firms outpace destroyed losers, who could be the previous year's winners. This rise in firm-specific fundamentals volatility elevates firm-specific return volatility in a sufficiently informationally efficient stock market. These linkages are interconnected feedback loops rather than unidirectional chains of causality
Year of publication: |
2013
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Authors: | Morck, Randall |
Other Persons: | Yeung, Bernard Yin (contributor) ; Yu, Wayne (contributor) |
Publisher: |
[2013]: [S.l.] : SSRN |
Subject: | Theorie | Theory | Volkswirtschaft | Economy | Wirtschaftswachstum | Economic growth | Wirtschaftspolitik | Economic policy | New Economy | New economy |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Annual Review of Financial Economics, Vol. 5, pp. 143-166, 2013 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2013 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013073234