סמינר במימון חשבונאות

Philip Bond,  (University of Washington)

Abstract:

I analyze the effect of government bailouts on the information content of investments. I establish conditions under which expectations of future bailouts cause both investment magnitudes and asset prices to become more divorced from the fundamental quality of an investment. This in turn means that each investor extracts less useful information from the investment decisions of other investors, and makes worse investment decisions. In order to establish these results with minimal assumptions on payoff functions and distributions, I derive new results relating to Lehmann's (1988) measure of information content. These results are potentially useful in other applications.

Light refreshments will be served before the lecture

The article will be  available from the finance-accounting seminar website:

https://en-recanati.tau.ac.il/Finance-Accounting-Seminars