Strategic Information Revelation and Capital Allocation

Strategic Information Revelation and Capital Allocation

It is commonly believed that stock prices help firms' managers make more efficient real investment decisions, because they aggregate information about fundamentals that is not otherwise known to managers. This paper identifies a limitation to...

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Bibliographic Details
Main Author:	Pedraza Morales, Alvaro
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS TO FINANCING ACCOUNTING AFFILIATED ORGANIZATIONS AGENCY PROBLEM AMORTIZATION ARBITRAGE ASSET PRICE ASSET PRICES ASSETS RATIO ASYMMETRIC INFORMATION BENCHMARK BOND BOOK VALUE BOOK VALUES BROKERS BUDGETING CAPITAL ALLOCATION CASH FLOWS CORPORATE BOND CORPORATE INSIDERS CORPORATE INVESTMENT CREDIT RATING CREDIT SPREADS DEMAND FUNCTION DEVELOPMENT POLICY DISCLOSURE ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUPPLY EMERGING MARKETS EQUILIBRIUM EQUILIBRIUM PRICE EQUITY INVESTORS EXOGENOUS SUPPLY EXPECTED VALUE EXPENDITURES FAIR FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL MARKETS FINANCIAL STUDIES FINANCIAL SYSTEMS FIXED ASSETS FIXED INVESTMENT FORECASTS FUNCTIONAL FORMS FUTURE CASH FLOW FUTURE EARNINGS GDP IMPERFECT COMPETITION INCOME INDIVIDUAL FIRMS INDIVIDUAL INVESTORS INFLATION INFORMED TRADER INFORMED TRADERS INSIDER TRADING INSTITUTIONAL INVESTORS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL SETTLEMENTS INVESTING INVESTMENT CHOICE INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT OPPORTUNITY INVESTMENT PROJECTS INVESTMENT RATE INVESTMENT RETURN INVESTMENT STRATEGY IPO LIQUIDITY MACROECONOMIC VARIABLES MARKET COMPETITION MARKET DATA MARKET EFFICIENCY MARKET INDEX MARKET INFORMATION MARKET PARTICIPANT MARKET PARTICIPANTS MARKET POWER MARKET PRICES MARKET STOCK MARKET VALUE NASH EQUILIBRIUM NEW PRODUCTS NPV OPEN MARKET OPTIMAL INVESTMENT OPTIMIZATION OUTPUT PERFECT INFORMATION POLITICAL ECONOMY PRICE ADJUSTMENT PRICE EFFECT PRICE MOVEMENTS PRIVATE EQUITY PRIVATE EQUITY INVESTOR PRIVATE SECTOR DEVELOPMENT PRODUCT MARKET PROFIT MAXIMIZATION PROFIT MAXIMIZING PROFITABILITY PUBLIC EQUITY REGULATORS RETURN RETURNS RISK NEUTRAL SALES SECONDARY MARKET SECONDARY MARKETS SECURITIES SECURITIES MARKET SHARE PRICE SHARE PRICES SHARES OUTSTANDING SHORT SELLING SPECULATOR SPECULATORS SPREAD STOCK MARKET STOCK MARKETS STOCK PRICE STOCK PRICES STOCK RETURN STOCK RETURNS STOCKS SUPPLY CURVE SUPPLY SHOCK SYNCHRONOUS STOCK PRICE MOVEMENTS TRADES TRADING ACTIVITY TRADING COST TRADING COSTS TRADING VOLUME UNEMPLOYMENT UNINFORMED TRADERS VALUATION VALUATIONS VALUE OF ASSETS VOLATILITY
Online Access:	http://documents.worldbank.org/curated/en/2014/07/19902948/strategic-information-revelation-capital-allocation http://hdl.handle.net/10986/19380

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