a large empirical literature from the 1950's and 60's, that it is necessary to distinguish the response of price to an … two models that can potentially explain these findings. Both break the link between price and marginal cost, thereby … second is driven by firms pricing to limit non-price competition within their market …

-time position adjustments suggests this quarterly pattern might reduce price informativeness. Consistent with this possibility, we … find that quarter-ends are associated with greater subsequent return reversals and lower price efficiency. Additional tests … support a link between disclosure-driven trades and lower price efficiency …

futures markets. The empirical evidence suggests that investor sentiment has a positive impact on price volatility and the bid … advantages on the futures market, which diminishes the futures markets' leading informational role and contributions to price … discovery. Our findings provide support for the theory of limits to arbitrage …

We find that investment responds more sensitively to a firm's Tobin's q when its share price is more discrete. Low-price … increases price informativeness and investment-q sensitivity, particularly when firms face tighter tick-size constraints … information and when they have more resources to respond to price signals …