| Title | Price Rigidities and the Value of Public Information |
| Author | |
| Corresponding Author | Xie, Jin |
| Publication Years | 2023-09-01
|
| DOI | |
| Source Title | |
| ISSN | 0021-8456
|
| EISSN | 1475-679X
|
| Abstract | Firms' inflexibility in adjusting output prices to economic shocks exacerbates information asymmetry with respect to firms' profits, but public information on firms' cost structure mitigates this problem. We construct a novel form of public information from economic statistics disclosed by the government and find that such public information significantly reduces inflexible-price firms' bid-ask spreads, the probability of informed trading, and analyst forecast dispersions, but these results do not hold for flexible-price firms. Security analysts seek more cost-related information during conference calls about inflexible-price firms, but such a phenomenon is observed less frequently if a firm's input cost is more publicly observable. In addition, stock markets react more strongly to earning news announced by inflexible-price firms, consistent with our intuition. |
| Keywords | |
| URL | [Source Record] |
| Indexed By | |
| Language | English
|
| SUSTech Authorship | First
|
| WOS Research Area | Business & Economics
|
| WOS Subject | Business, Finance
|
| WOS Accession No | WOS:001074654400001
|
| Publisher | |
| ESI Research Field | ECONOMICS BUSINESS
|
| Data Source | Web of Science
|
| Citation statistics |
Cited Times [WOS]:0
|
| Document Type | Journal Article |
| Identifier | http://kc.sustech.edu.cn/handle/2SGJ60CL/571877 |
| Department | School of Business |
| Affiliation | 1.Southern Univ Sci & Technol, Business Sch, Shenzhen, Peoples R China 2.Yeshiva Univ, Sy Syms Sch Business, New York, NY 10033 USA 3.Peking Univ, HSBC Business Sch, Shenzhen, Peoples R China |
| First Author Affilication | School of Business |
| First Author's First Affilication | School of Business |
| Recommended Citation GB/T 7714 |
Gu, Lifeng,Xie, Jin. Price Rigidities and the Value of Public Information[J]. JOURNAL OF ACCOUNTING RESEARCH,2023.
|
| APA |
Gu, Lifeng,&Xie, Jin.(2023).Price Rigidities and the Value of Public Information.JOURNAL OF ACCOUNTING RESEARCH.
|
| MLA |
Gu, Lifeng,et al."Price Rigidities and the Value of Public Information".JOURNAL OF ACCOUNTING RESEARCH (2023).
|
| Files in This Item: | There are no files associated with this item. | |||||
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