Hostname: page-component-76fb5796d-wq484 Total loading time: 0 Render date: 2024-04-30T05:35:15.200Z Has data issue: false hasContentIssue false
  • English
  • Français

The Value of Risk-Reducing Information

Published online by Cambridge University Press:  19 October 2009

Jeffrey F. Jaffe  and
Larry J. Merville
Get access Rights & Permissions [Opens in a new window]

Extract

It has been suggested that information has the three following uses:

1. Information can be employed to earn trading profits.

2. Information can improve the operating decisions of a firm or group of firms and thereby increase the stock price.

3. Information can reduce the risk of a firm or group of firms and thereby increase the stock price.

Type
Las Vegas Versus the Stock Market
Information
Journal of Financial and Quantitative Analysis , Volume 9 , Issue 5 , November 1974 , pp. 697 - 707
Copyright
Copyright © School of Business Administration, University of Washington 1974

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Alchian, Armen. “Information Costs, Pricing, and Resource Unemployment.” Edited by Phelps, E.S. et al. In Microeconomic Foundations of Employment and Inflation Theory, New York, 1970.Google Scholar
[2]Demsetz, H. “Information and Efficiency: Another Viewpoint.” Journal of Law and Economics, vol. 12 (April 1969), pp. 1–22.CrossRefGoogle Scholar
[3]Fama, Eugene and Laffer, Arthur. “Information and Capital Markets.” Journal of Business, July 1971, pp. 289–298.CrossRefGoogle Scholar
[4]Gonedes, Nicholas J. “Information-Production and Capital Market Equilibrium.” Report 7256 of the Center for Mathematical Studies in Business and Economics, November 1972 and Forthcoming in Journal of Finance.Google Scholar
[5]Hirshleifer, Jack. Investment, Interest and Capital. Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1970.Google Scholar
[6]Hirshleifer, Jack. “The Private and Social Value of Information and The Reward to Inventive Activity.” American Economic Review, September 1971, pp. 561–574.Google Scholar
[7]Jaffe, Jeffrey F. “The Effect of Regulation Changes on Insider Trading.” The Bell Journal of Economics and Management Science, vol. 5 (Spring 1974), pp. 93–124.CrossRefGoogle Scholar
[8]Jaffe, Jeffrey F. “Special Information and Insider Trading.” Journal of Business, July 1974.CrossRefGoogle Scholar
[9]Jaffe, Jeffrey F.“The Value of Information for Trading Purposes.”Paper presented at the Wells Fargo Conference,July 1973. Forthcoming in Journal of Financial Economics.Google Scholar
[10]Jaffe, Jeffrey F. “On the Use of Public Information.” Forthcoming in Journal of Finance.Google Scholar
[11]Jaffe, Jeffrey F. and Merville, Larry J.. “Stock Price Dependencies and the Valuation of Risky Assets with Discontinuous Temporal Returns.” Forthcoming in Journal of Finance.Google Scholar
[12]Ozga, S.A. “Imperfect Markets through Lack of Knowledge.” Quarterly Journal of Economics, vol. 79 (February 1970), pp. 29–54.Google Scholar
[13]Stigler, G. “The Economics of Information.” Journal of Political Economy, vol. 70 (October 1962), pp. 94–105.CrossRefGoogle Scholar