Barron, Orie; Sheng, Xuguang; Thevenot, Maya - Department of Economics, George Washington University - 2013
examine the joint effects of information asymmetry and information precision on the cost of capital and how these effects vary … and the cost of capital, leading to erroneous inferences, if not considered. We also show that, while information … asymmetry increases the cost of capital in most settings, it decreases the cost of capital when the amount of public information …