Investor Competition Over Information and the Pricing of Information Asymmetry

  title={Investor Competition Over Information and the Pricing of Information Asymmetry},
  author={Brian Akins and Jeffrey Ng and Rodrigo S. Verdi},
  • Brian Akins, Jeffrey Ng, Rodrigo S. Verdi
  • Published 2011
Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the pricing of information asymmetry that is conditional on competition. We develop and validate empirical proxies for competition using the number and concentration of institutional investor ownership. Using… CONTINUE READING
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