Chen, Hung-Ling; Chow, Edward H. - In: Journal of Multinational Financial Management 21 (2011) 3, pp. 177-190
This study examines the Merton (1987) 'investor recognition' hypothesis, which postulates that an increase in the total number of investors with prior knowledge of a firm will lower the expected returns of investors by reducing the 'shadow costs' arising from the lack of knowledge of a...
