The consequences of information differences across investors in capital markets are still much debated. This paper examines the relation between information differences across investors and the cost of capital, and makes three points. First, in models of perfect competition, information...

We study the relation between the centralization of regulated financial information, information asymmetry, and capital market liquidity. Specifically, we exploit the staggered implementation of digital storage and access facilities (called Officially Appointed Mechanisms, or OAMs) for regulated...

Barth et al. (2017) (BCCV) show that firms with higher levels of compliance with Integrated Reporting (<IR>) principles are associated with higher levels of firm value. However, according to disclosure processing costs theory, the positive association may not hold for high levels of <IR> disclosures. We...</ir></ir>

The government in the United Kingdom set up the Kay Review to examine and make recommendations relating to the equity market and its impact on the long-term competitive performance of businesses. The article considers the comments and recommendations dealing with corporate disclosure. It argues...

We study a model where some investors ("hedgers") are bad at information processing, while others ("speculators") have superior information-processing ability and trade purely to exploit it. The disclosure of financial information induces a trade externality: if speculators refrain from trading,...

How do opacity and disclosure policies impact the likelihood of debt runs and economicefficiency? I construct a dynamic model where debt yields are endogenous and mappedexplicitly to the degree of transparency, the regulatory disclosure regime and the stateof the economy. I find that: opacity is...

This paper uses a unique setting of an unbanked industry with high information costs to study the impact of information dissemination by the government on the future growth. Specifically, the paper studies the US Marijuana industry. Marijuana is considered an illegal drug by Federal law and...

Since macro-prudential stress tests have become the main instruments of the supervisory authorities toolkit, the debate on the effect of their results disclosure inflamed. Our work aims at providing a framework that, via a dynamic estimation of the betas, allows to observe the impact of the new...