Article ID Journal Published Year Pages File Type
5062373 Economics Letters 2008 6 Pages PDF
Abstract

While explicitly assuming that stock price conveys valuable information to the management, we show that the value loss from diversification is a function of the stock price informativeness. More informed stock trading leads to a more efficient investment and a smaller diversification discount.

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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Stock trading and diversification discount
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