This paper analyzes the problem faced by a risk-averse firm considering how much to invest in a risky project. The firm receives a signal about the value of the project. We derive necessary and sufficient conditions on the signal distribution such that (i) the agent's investment is nondecreasing...

We study how stock price informativeness changes with the presence of highfrequency trading (HFT). Our estimate is based on the staggered start of HFT participation in a panel of international exchanges. With HFT presence market prices are a less reliable predictor of future cash ows and...

We define a novel information acquisition model that accounts explicitly for the influence of positive and negative anticipated emotions in the evaluation and selection incentives of decision makers (DMs). The model focuses on the value assigned by the DMs to the information being acquired and...