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Disclosure and the Cost of Capital: Evidence from Firms' Responses to the Enron Shock
Leuz, Christian; Schrand, Catherine - National Bureau of Economic Research (NBER) - 2009
This paper examines the link between disclosure and the cost of capital. We exploit an exogenous cost of capital shock created by the Enron scandal in Fall 2001 and analyze firms' disclosure responses to this shock. These tests are opposite to the typical research design that analyzes cost of...
Persistent link: https://www.econbiz.de/10005714190
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Endogenous Information Flows and the Clustering of Announcements
Acharya, Viral V.; DeMarzo, Peter M.; Kremer, Ilan - National Bureau of Economic Research (NBER) - 2010
We consider the strategic timing of information releases in a dynamic disclosure model. Because investors don't know whether or when the firm is informed, the firm will not necessarily disclose immediately. We show that bad market news can trigger the immediate release of information by firms....
Persistent link: https://www.econbiz.de/10008684851
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A Theory of Income Smoothing When Insiders Know More Than Outsiders
Acharya, Viral V.; Lambrecht, Bart M. - National Bureau of Economic Research (NBER) - 2011
independent auditing mitigates the problem, implying that accounting quality can enhance investments, size of public stock markets …
Persistent link: https://www.econbiz.de/10009395472
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Decentralized Trading with Private Information
Golosov, Mikhail; Lorenzoni, Guido; Tsyvinski, Aleh - National Bureau of Economic Research (NBER) - 2009
The paper studies asset pricing in informationally decentralized markets. These markets have two key frictions: trading is decentralized (bilateral), and some agents have private information. We analyze how uninformed agents acquire information over time from their bilateral trades. In...
Persistent link: https://www.econbiz.de/10008627116
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Insider Trading, Stochastic Liquidity and Equilibrium Prices
Collin-Dufresne, Pierre; Fos, Vyacheslav - National Bureau of Economic Research (NBER) - 2012
We extend Kyle's (1985) model of insider trading to the case where liquidity provided by noise traders follows a general stochastic process. Even though the level of noise trading volatility is observable, in equilibrium, measured price impact is stochastic. If noise trading volatility is...
Persistent link: https://www.econbiz.de/10010581038
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Strategic Trading in Informationally Complex Environments
Ostrovsky, Michael; Lambert, Nicolas S.; Panov, Mikhail - National Bureau of Economic Research (NBER) - 2014
We study trading behavior and the properties of prices in informationally complex markets. Our model is based on the single-period version of the linear-normal framework of Kyle (1985). We allow for essentially arbitrary correlations among the random variables involved in the model: the value of...
Persistent link: https://www.econbiz.de/10010951327
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Robust Benchmark Design
Duffie, Darrell; Dworczak, Piotr - National Bureau of Economic Research (NBER) - 2014
Recent scandals over the manipulation of LIBOR and foreign exchange benchmarks have spurred policy discussions of the appropriate design of financial benchmarks. We solve a version of the problem faced by a financial benchmark administrator. Acting as a mechanism designer, the benchmark...
Persistent link: https://www.econbiz.de/10010951190
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Information, analysts, and stock return comovement
Morck, Randall; Hameed, Allaudeen; Shen, Jianfeng; … - National Bureau of Economic Research (NBER) - 2010
We examine information spillover as a source of stock return synchronicity, where information about highly-followed "prominent" stocks is used to price other "neglected" stocks sharing a common fundamental component. We find that stocks followed by few analysts co-move significantly with...
Persistent link: https://www.econbiz.de/10008631079
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The Effect of Regulatory Harmonization on Cross-border Labor Migration: Evidence from the Accounting Profession
Leuz, Christian; Bloomfield, Matthew J.; Brüggemann, Ulf; … - National Bureau of Economic Research (NBER) - 2015
directives in the European Union (EU) that harmonized accounting and auditing standards. This regulatory harmonization should … make it less costly for those who work in the accounting profession to move across countries. Our research design compares … the cross-border migration of accounting professionals relative to tightly-matched other professionals before and after …
Persistent link: https://www.econbiz.de/10011133512
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Private Sunspots and Idiosyncratic Investor Sentiment
Angeletos, George-Marios - National Bureau of Economic Research (NBER) - 2008
This paper shows how rational investors can have different degrees of optimism regarding the prospects of the economy, even if they share exactly the same information regarding all economic fundamentals. The key is that heterogeneity in expectations regarding endogenous outcomes can emerge as a...
Persistent link: https://www.econbiz.de/10005580446