Country of origin may provide a signal of product quality. If consumers are on average "correct" in thei r assessments of product quality from a given country, then a "lemons " effect emerges. A firm which pays the full cost of quality improvem ent will receive only diluted benefits in return,...

Previous studies of insider trading have examined the profitability to executives of their stock trading with a view to evaluating the informational efficiency of securities markets. The authors examine empirically whether insider trading raises or lowers firm value. To correctly identify the...