The Library
Disclosing a random walk
Tools
Kremer, Ilan, Schreiber, Amnon and Skrzypacz, Andrzej (2024) Disclosing a random walk. The Journal of Finance , 79 (2). pp. 1123-1146. doi:10.1111/jofi.13290 ISSN 0022-1082.
|
PDF
The Journal of Finance - 2023 - KREMER - Disclosing a Random Walk.pdf - Published Version - Requires a PDF viewer. Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0. Download (450Kb) | Preview |
|
PDF
WRAP-Disclosing-a-random-walk-Kremer-2023.pdf - Accepted Version Embargoed item. Restricted access to Repository staff only - Requires a PDF viewer. Download (530Kb) |
Official URL: https://doi.org/10.1111/jofi.13290
Abstract
We examine a dynamic disclosure model in which the value of a firm follows a random walk. Every period, with some probability, the manager learns the firm's value and decides whether to disclose it. The manager maximizes the market perception of the firm's value, which is based on disclosed information. In equilibrium, the manager follows a threshold strategy with thresholds below current prices. He sometimes reveals pessimistic information that reduces the market perception of the firm's value. He does so to reduce future market uncertainty, which is valuable even under risk-neutrality.
Item Type: | Journal Article | ||||||||
---|---|---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HG Finance |
||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | Competition, Imperfect, Equilibrium (Economics), Disclosure in accounting | ||||||||
Journal or Publication Title: | The Journal of Finance | ||||||||
Publisher: | Wiley-Blackwell Publishing, Inc. | ||||||||
ISSN: | 0022-1082 | ||||||||
Official Date: | April 2024 | ||||||||
Dates: |
|
||||||||
Volume: | 79 | ||||||||
Number: | 2 | ||||||||
Page Range: | pp. 1123-1146 | ||||||||
DOI: | 10.1111/jofi.13290 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||
Date of first compliant deposit: | 16 January 2023 | ||||||||
Date of first compliant Open Access: | 16 January 2023 | ||||||||
RIOXX Funder/Project Grant: |
|
||||||||
Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year