Should we regulate financial information?

Should We Regulate Financial Information?

Regulations that require asset issuers to disclose payoff-relevant information to potential buyers sound like obvious measures to increase investor welfare. But in many cases, such regulations harm investors. In an equilibrium model, asset returns compensate investors for risk. By making payoffs less uncertain, disclosure reduces risk and therefore reduces return. As high-risk, high-return inve...

How should we discount the costs of financial distress?*

Practitioners and academics usually discount expected future costs of financial distress using a government bond yield, and sometimes using the firm’s own cost of debt. We argue that this practice is wrong and that it underestimates the true present value of distress costs, because distress is more likely to happen when other assets perform poorly. Thus, the costs of financial distress must be ...

Should we stay or should we go?

With the potential benefit of positive movement in the housing market and now having two properties this may place you in a good position to increase your retirement nest egg if you choose to sell your family home when you downsize. Depending on your situation you may even be able to keep the family home as an investment. One of the biggest decisions for many retirees is whether to stay in the ...

How Should We Determine Who Should Regulate Lawyers--Managing Conflict and Context in Professional Regulation

Should We Consider another Booster Dose of Measles Vaccine?

Background: To date, 36 years has passed since the beginning of measles vaccination; the disease is still circulating around the world, threatening lives of human beings especially in developing countries.  In recent years, we have confronted measles in previously vaccinated adults from all over the country. Objective: To find out if there is a need for changing our routine measles vaccination ...