Paugam, Luc; Ramond, Olivier - Université Paris-Dauphine (Paris IX) - 2015
Information risk – the uncertainty regarding the parameters of the distribution of firms’ future cash flows – generates … valuation errors and is costly to investors who require a higher return to compensate for greater information risk. We argue … that, on average, through their impairment-testing disclosures managers convey information that reduces information risk …