... the empirical pattern mentioned earlier that they sell gradually over time. Without their price impact, all the sales would take place immediately and exclusively at the very first chance to trade, and any subsequent disclosure would be irrelevant for traders’ welfare ( Christensen et al. 2010 ). By contrast...

...Guochang Zhang ABSTRACT In an extended capital asset pricing model (CAPM) setting, I examine how the quality of accounting standards affects real investment and welfare through its impact on investment hurdle rates. In this model, cash flow uncertainty arises from two fundamental sources...