This paper develops a signaling model in which accounting information improves real investment decisions. Pure cash …' interests. Accounting by prespecified, "objective" rules alleviates the underinvestment problem …

This paper studies the role of insider trading in explaining cross-country differences in stock market volatility. It … volatile stock markets, even after one controls for liquidity/maturity of the market, and the volatility of the underlying … fundamentals (volatility of real output and of monetary and fiscal policies). Moreover, the effect of insider trading is …

ownership and trades by large institutions lead to higher volatility and to increased return and liquidity comovement. Moreover …

-at-risk constraints. The results also have strong implications for macro models where volatility affects investment decisions, suggesting …

data on stock market levels and volatility as proxies for the first and second moments of business conditions. We then use … second moment shocks accounting for at least a half of the variation in growth. Variations in higher moments of stock market …

According to conventional wisdom, annualized volatility of stock returns is lower when computed over long horizons than …