Promising emerging equity markets often witness investment herds and frenzies, accompanied by an abundance of media coverage. Complementarity in information acquisition can explain these anomalies. Because information has a high fixed cost of production, its equilibrium price is low when quantity is high. Investors all buy the most popular information because it has the lowest price. Given two ...

In light of the financial crisis, it has become even more critical for financial service providers to remain competitive. This paper discusses new perspectives on the problems of today’s advisory services, including the customer's dissatisfaction with personalization and individualization. Thereby we draw on research in human information behavior, particularly Wilson's model, which provides a p...

An Information Grid uses grid technologies to achieve the sharing, management, and service providing of information resources. In this article, the demand for grid technology by the financial industry is analyzed and the architecture of a financial information grid is proposed.

We investigate the role of socioeconomic status (SES) on people’s ability to learn from information in financial markets. In an experimental setting we find that low SES participants, relative to medium or high SES ones, form more pessimistic beliefs about the distribution of outcomes of financial investments when, objectively, these investments are likely to be good. This pessimism bias regard...

The design and the development of multichannel information systems require new approaches, mainly based on the definition of adaptive behavior with the goal of increasing the efficiency and effectiveness of solutions. In this paper, we show a simplified example of financial information system, where several services impose constraints. The approach we propose tries to solve these service limita...

Information is fundamental to Finance, and understanding how it flows from official sources to news agencies is a central problem. Readers need to digest information rapidly from high volume news feeds, which often contain duplicate and irrelevant stories, to gain a competitive advantage. We propose a text categorisation task over pairs of official announcements and news stories to identify whe...

Financial Reporting, Regulation and Information Asymmetry

This paper proposes a new approach to modelling financial transmission effects. In simultaneous systems of stock returns, fundamental shocks are identified through heteroscedasticity. The size of contemporaneous spillovers is determined in the fashion of smooth transition regression by the innovations’ variances and (negative) signs, both representing typical crisis-related magnitudes. Thereby,...

In the evolutionary setting for a …nancial market developed by Blume and Easley (1992), we consider an in…nitely repeated version of a model à la Grossman and Stiglitz (1980) with asymmetrically informed traders. Informed traders observe the realisation of a payo¤ relevant signal before making their portfolio decisions. Uninformed traders do not have direct access to this kind of information, b...