Article ID Journal Published Year Pages File Type
5062007 Economics Letters 2008 8 Pages PDF
Abstract

This paper studies a risk-averse insider's reaction to mandatory disclosure regulations. In particular, we examine the effects of disclosure on price efficiency and market liquidity. Contrary to what people generally believe, mandatory disclosure may lead to less efficient prices and less liquid markets.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Risk aversion, mandatory disclosure and the concealment of information
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