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We propose the standard neoclassical model of investment under uncertainty with short-run adjustment frictions as a … of variables of interest to accounting research (e.g., earnings, returns, investment, market-to-book) absent accounting …
Persistent link: https://www.econbiz.de/10012902450
We propose the standard neoclassical model of investment under uncertainty with short‐run adjustment frictions as a … of variables of interest to accounting research (e.g., earnings, returns, investment, market‐to‐book) absent accounting …
Persistent link: https://www.econbiz.de/10012867279
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We show that the stock market may fail to aggregate information even if it appears to be efficient, and that the resulting decrease in the information content of prices may drastically reduce welfare. We solve a macroeconomic model in which information about fundamentals is dispersed and...
Persistent link: https://www.econbiz.de/10013125571
investment policies. As information aggregates in the market, these errors amplify and crowd out the information content of stock …
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