A Theory of Disclosure in Speculative Markets

Summary

It is shown that there is a strategic complementarity between sellers in their disclosure decisions and demonstrates that the endogenous choice of imprecise disclosure amplifies the extent to which assets are overpriced.

Keywords

Financial economics, Business, Monetary economics, Economics, Law and economics

References

Moral Hazard and ObservabilityBengt Holmström — 1979
Did Dubious Mortgage Origination Practices Distort House PricesJohn M. Griffin, Gonzalo Maturana — 2016
A survey of behavioral financeNicholas Barberis, Richard H. Thaler — 2002
Driven to Distraction: Extraneous Events and Underreaction to Earnings NewsDavid Hirshleifer, Sonya S. Lim, Siew Hong Teoh — 2009
The go-go years : the drama and crashing finale of Wall Street's bullish 60sJohn Brooks — 1999
A History of Corporate FinanceR. Aggarwal — 1997
The Effect of the 1933 Securities Act on Investor Information and the Performance of New IssuesCarol Simon — 1986
A random walk down Wall Street : including a life-cycle guide to personal investingB. Malkiel — 1999
Intra-industry information releases : A recursive systems approachGreg Clinch, N. A. Sinclair — 1987
Real Estate Investors, the Leverage Cycle, and the Housing Market CrisisAndrew F. Haughwout, Donghoon Lee, Joseph Tracy — 2011
Agency Costs, Net Worth, and Business FluctuationsBen Bernanke, Gertler, Mark, Ben Bernanke — 1988
Intra-industry information transfers associated with earnings releasesGeorge Foster — 1981
Earnings Conservatism and Value Relevance Across the Business CycleDavid S. Jenkins, Gregory D. Kane, Uma Velury — 2009
Speculative Investor Behavior in a Stock Market with Heterogeneous ExpectationsJ. Michael Harrison, David M. Kreps — 1978
A "Signal-Jamming" Theory of PredationDrew Fudenberg, Jean Tirole — 1986
Economic Catastrophe BondsJoshua D. Coval, Jakub W. Jurek, Erik Stafford — 2009
Market Liquidity and Performance MonitoringBengt Holmström, Jean Tirole — 1993
An earnings prediction approach to examining intercompany information transfersRobert N. Freeman, Senyo Y. Tse — 1992
Differences of Opinion Make a Horse RaceMilton Harris, Artur Raviv — 1993
IRRATIONAL EXUBERANCE?Jeffrey S. Lantis — 2011

Cited by

Speculation with Information DisclosurePaolo Pasquariello, Yifei Wang — 2017
Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literatureDan Amiram, Zahn Bozanic, James D. Cox — 2018
Disagreement, Speculation and Management ForecastsValentin Dimitrov, Darius Palia, Zhiwei Xu — 2019
Análises do Balanço Patrimonial da cidade de São Paulo (2021-2022) com suporte da Teoria da DivulgaçãoMaurício Corrêa da Silva — 2023

Related papers

Fiscal Policy and the Terms of Trade in an Analytical Two-Country Dynamic ModelMarcelo Bianconi — 2003
Monetary-fiscal policy interactions and the price level:Background and beyondEric M. Leeper, Tack Yun — 2006
Unemployment as excess supply of labor: Implications for wage and price inflationMiguel Casares — 2010
Stabilisation, Policy Targets and Unemployment in Imperfectly Competitive EconomiesGeorge J. Bratsiotis, Christopher Martin — 1999
The macroeconomic impact of the nixon wage and price controls: A general equilibrium approachLawrence Davidson — 1983
Fiscal and exchange rate policies in a fix-price trade model with export rationingJohn T. Cuddington — 1980
Welfare costs of inflation in a dynamic economy with search unemploymentBurkhard Heer — 2002
Macroeconomic priorities revisited: the behavioural foundations of stabilization policiesFabio D’Orlando, Francesco Ferrante — 2018
Robustness of multiple equilibria in OLG economiesGuido Cazzavillan, Patrick Pintus — 2004
RAMSEY MONETARY POLICY WITH CAPITAL ACCUMULATION AND NOMINAL RIGIDITIESEster Faia — 2008