Dynamic information acquisition and time-varying uncertainty

Abstract

This paper studies the role of information acquisition in propagating/stabilizing uncertainty shocks in a dynamic financial market. In a static world, uncertainty raises the value of information, which encourages more information acquisition. In a dynamic world, however, uncertainty can depress information acquisition through a dynamic complementarity channel: More uncertainty induces future investors to trade more cautiously. This renders future resale stock price less informative and reduces the value of information today. Due to the dynamic complementarity, transitory uncertainty shocks can have long-lasting impacts. Direct government purchases can stimulate information production, eliminate equilibrium multiplicity, and attenuate the impacts of uncertainty shocks by raising the effective risk-bearing capacity of the informed investors.

Data Asset Disclosure and Nonprofessional Investor Judgment: Evidence from Questionnaire Experiments

“…Listed companies usually do not voluntarily disclose information about their data assets to the public, and it is difficult for nonprofessional investors to get additional information through other channels to correct the assessment gap. e lack of information leads to low evaluation of listed companies' nonfinancial performance by nonprofessional investors [25,26]. erefore, the disclosure of information about data assets allows nonprofessional investors to obtain more reliable judgment bases at a lower cost.…”

Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis

“…After the merger of Didi Dache and Kuaidi Dache, they have obtained stronger financial support, improved the previous blind competition mechanism, and diversified the payment methods. However, at the same time, the original development strategies of both parties may undergo changes, which will lead to the aforementioned series of issues [8].…”