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- Publisher Website: 10.2308/accr-10157
- Scopus: eid_2-s2.0-84857261494
- WOS: WOS:000299819700002
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Article: Investor competition over information and the pricing of information asymmetry
Title | Investor competition over information and the pricing of information asymmetry |
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Authors | |
Keywords | Asset pricing Information quality Information risk |
Issue Date | 2012 |
Citation | Accounting Review, 2012, v. 87, n. 1, p. 35-58 How to Cite? |
Abstract | Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the pricing of information asymmetry that is conditional on competition. We develop and validate empirical proxies for competition using the number and concentration of institutional investor ownership. Using these proxies, we find a lower pricing of information asymmetry when there is more competition. Overall, our results suggest that competition between informed investors has an important effect on how the information environment affects the cost of capital. |
Persistent Identifier | http://hdl.handle.net/10722/315224 |
ISSN | 2023 Impact Factor: 4.4 2023 SCImago Journal Rankings: 4.640 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Akins, Brian K. | - |
dc.contributor.author | Ng, Jeffrey | - |
dc.contributor.author | Verdi, Rodrigo S. | - |
dc.date.accessioned | 2022-08-05T10:18:07Z | - |
dc.date.available | 2022-08-05T10:18:07Z | - |
dc.date.issued | 2012 | - |
dc.identifier.citation | Accounting Review, 2012, v. 87, n. 1, p. 35-58 | - |
dc.identifier.issn | 0001-4826 | - |
dc.identifier.uri | http://hdl.handle.net/10722/315224 | - |
dc.description.abstract | Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the pricing of information asymmetry that is conditional on competition. We develop and validate empirical proxies for competition using the number and concentration of institutional investor ownership. Using these proxies, we find a lower pricing of information asymmetry when there is more competition. Overall, our results suggest that competition between informed investors has an important effect on how the information environment affects the cost of capital. | - |
dc.language | eng | - |
dc.relation.ispartof | Accounting Review | - |
dc.subject | Asset pricing | - |
dc.subject | Information quality | - |
dc.subject | Information risk | - |
dc.title | Investor competition over information and the pricing of information asymmetry | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.2308/accr-10157 | - |
dc.identifier.scopus | eid_2-s2.0-84857261494 | - |
dc.identifier.volume | 87 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 35 | - |
dc.identifier.epage | 58 | - |
dc.identifier.isi | WOS:000299819700002 | - |