Investors’ information acquisition and the manager’s value-risk tradeoff

IF 4.8 3区 管理学 Q1 BUSINESS, FINANCE Review of Accounting Studies Pub Date : 2024-06-21 DOI:10.1007/s11142-024-09839-3
Hao Xue
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Abstract

This paper studies a model in which investors’ information acquisition and the manager’s investment choice (hence the moments of the firm’s cash flow) are jointly determined. I show that a lower information acquisition cost alters the information environment in a way that motivates the manager to prioritize reducing the variance of cash flow over improving its mean. I present conditions under which a decrease in the cost of information acquisition reduces stock valuations and investors’ welfare. The analysis highlights the importance of considering the joint determination of firm risk in studying investors’ information acquisition. The model’s predictions are relevant to the growing literature that studies technological advancements and regulatory requirements that lower the cost for investors to acquire and process information.

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投资者的信息获取与管理者的价值风险权衡
本文研究了一个模型,在该模型中,投资者的信息获取和管理者的投资选择(即公司现金流的时刻)是共同决定的。我的研究表明,信息获取成本的降低会改变信息环境,从而促使经理优先考虑降低现金流的方差,而不是提高其均值。我提出了降低信息获取成本会降低股票估值和投资者福利的条件。分析强调了在研究投资者信息获取时考虑公司风险联合决定的重要性。该模型的预测与研究降低投资者获取和处理信息成本的技术进步和监管要求的日益增多的文献相关。
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来源期刊
Review of Accounting Studies
Review of Accounting Studies BUSINESS, FINANCE-
CiteScore
7.90
自引率
7.10%
发文量
82
期刊介绍: Review of Accounting Studies provides an outlet for significant academic research in accounting including theoretical, empirical, and experimental work. The journal is committed to the principle that distinctive scholarship is rigorous. While the editors encourage all forms of research, it must contribute to the discipline of accounting. The Review of Accounting Studies is committed to prompt turnaround on the manuscripts it receives.  For the majority of manuscripts the journal will make an accept-reject decision on the first round.  Authors will be provided the opportunity to revise accepted manuscripts in response to reviewer and editor comments; however, discretion over such manuscripts resides principally with the authors.  An editorial revise and resubmit decision is reserved for new submissions which are not acceptable in their current version, but for which the editor sees a clear path of changes which would make the manuscript publishable. Officially cited as: Rev Account Stud
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