Different disclosure activities and sophisticated investors
نویسندگان
چکیده
منابع مشابه
Presidential Address: Sophisticated Investors and Market Efficiency
Stock-market trading is increasingly dominated by sophisticated professionals, as opposed to individual investors. Will this trend ultimately lead to greater market efficiency? I consider two complicating factors. The first is crowding—the fact that, for a wide range of “unanchored” strategies, an arbitrageur cannot know how many of his peers are simultaneously entering the same trade. The seco...
متن کاملDisclosure Quality, Cost of Capital, and Investors’ Welfare∗
It is widely believed that disclosure quality improves investors’ welfare by reducing cost of capital in a competitive market. This paper examines this conventional wisdom by studying a production economy in which disclosure influences a firm’s investment decisions. I demonstrate three points. First, cost of capital could increase with disclosure quality when new investment is sufficiently elas...
متن کاملA Reason for Sophisticated Investors not to seize Arbitrage Opportunities in Markets without Frictions
Arbitrage opportunities exist when it is possible to generate a nonnegative income stream without incurring any costs. This is, for instance, the case when it is possible to buy a portfolio of assets that costs nothing today and that will yield a positive payoff in the future. It is a widespread belief that, as long as there are no market frictions, arbitrage opportunities cannot exist. The rea...
متن کاملSophisticated Players and Sophisticated Agents
A sophisticated player is an individual who takes the action of the opponents, in a strategic situation, as determined by decision of rational opponents, and acts accordingly. A sophisticated agent is rational in the choice of his action, but ignores the fact that he is part of a strategic situation. We discuss a notion of equilibrium with sophisticated agents, we provide conditions for its exi...
متن کاملWhy do foreign investors underperform domestic investors in trading activities? Evidence from Indonesia
Foreign investors generally underperform domestic investors in trading activities. This study shows that their inferior performance is attributable to non-initiated orders. Foreign investors actually perform better than domestic investors in initiated orders. In addition, their performance is also mixed when trades are classified depending on who the counterparties are. These mixed performances...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Revista Contabilidade & Finanças
سال: 2020
ISSN: 1808-057X,1519-7077
DOI: 10.1590/1808-057x201908940