Title: Overt and Secret Information Acquisition in Financial Markets
Speaker: Liyan Yang, University of Toronto
Abstract: We study the observability of investors' information-acquisition activities in financial markets. Improving this observability leads to two strategic effects on information acquisition:(i)the pricing effect arises from interactions between investors and the market maker, which can encourage or discourage information acquisition; and (ii) the competition effect concerns interactions amongst investors and always encourages information acquisition. We apply our theory to study voluntary and mandatory disclosures of corporate site visits. When the competition effect dominates, investors are likely to voluntarily disclose their visits. When the pricing effect dominates, mandatory disclosure is effective in changing information acquisition and market quality.
Time: 16:00-17:30, Tuesday, Sept. 7, 2022
Venue: Tencent Meeting ID：337 514 023
