To understand the current tendency toward transparency, we studied the effects of account disclosure in a laboratory. In our experiment, transparency in the financial accounts of listed companies improved information efficiency; but, even after checking for fundamentals, the transparency increased the volatility of market prices. Moreover, transparency improved investors' utility, so that their prefence for more certain assets emerged. Therefore, we argue that the current race toward transparency may be better explained by firms' and markets' intention to attract household investment rather than to improve market efficiency.
The race toward transparency: an experimental investigation / Rossi, Marco. - In: ECONOMIC NOTES. - ISSN 0391-5026. - STAMPA. - 31:3(2002), pp. 523-545. [10.1111/1468-0300.00096]
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Titolo: | The race toward transparency: an experimental investigation | |
Autori: | ||
Data di pubblicazione: | 2002 | |
Rivista: | ||
Citazione: | The race toward transparency: an experimental investigation / Rossi, Marco. - In: ECONOMIC NOTES. - ISSN 0391-5026. - STAMPA. - 31:3(2002), pp. 523-545. [10.1111/1468-0300.00096] | |
Handle: | http://hdl.handle.net/11573/41832 | |
Appartiene alla tipologia: | 01a Articolo in rivista |