This paper presents a synthesized model of asymmetric information. An empirical analysis of more than 1,400 NYSE common stocks shows that trade direction is more important than volume in revealing the asymmetry. There is also evidence to suggest that signed duration reflects informed trading activity. We use the proposed measure of information asymmetry to study daily changes in the level of in...

The issue of the impact of Law – especially Business Law – on the economy and especially on growth, has became the topic of hot debates over the last decades, within the academia as well as among policy makers, particularly in the development agencies community. For the latter, this interest grew out of some disillusion, in the 1980’s, over the effect of structural adjustment policies that have...

Using a unique European country dataset from 2000-2006, this paper analyzes how fiscal and legal environments impact the geography of private equity investments. We expect that an improvement in the intermediaries’ fiscal environment will cause a shift in the supply curve. This shift will increase domestic investments, generate a positive return differential between foreign and domestic investm...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Institutional transparency makes future contingencies more ea...

We show that investor recognition and bonding associated with cross-listing on a U.S. exchange are distinct effects using a sample of Canadian firms . In contrast to the post-listing decline documented in the literature, we find that cross-listed firms with a single class of shares enjoy a permanent increase in valuation if they attract and maintain investor recognition over time. Valuations of...

Market-oriented reforms in the electricity supply industry worldwide have changed the decision investment context. Risks, such as the real need for new capacity and the return on investment, which were formerly borne by consumers or by taxpayers, now have to be faced by investors. However, even when scarcity prices efficiently reflect the tightness of supply in electricity markets, the reliabil...