Evidence suggests the volatility of stock prices cannot be accounted for by information about future dividends. The authors argue that some of the volatility of stock prices in excess of fundamentals results from fluctuations in the amount of public information over time. Their model assumes that dividends and consumption are constant in the aggregate but that there are good firms and bad firms whose identity may be unknown to the public, as in George Akerlof's (1970) 'lemons' problem. In that case, the collective valuation of the constant dividend stream depends on the degree of informational asymmetry. Copyright 1994 by Oxford University Press.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.
Volume (Year): 32 (1994) Issue (Month): 2 (April) Pages: 228-35 Download reference. The following formats are available: HTML,
plain text,
BibTeX,
RIS (EndNote),
ReDIF
Handle: RePEc:oup:ecinqu:v:32:y:1994:i:2:p:228-35
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK Fax: 01865 267 985 Email: Web page: http://ei.oupjournals.org/
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)