Objective
The importance of information asymmetry in financial markets has long been recognized in financial economics. Most existing models focus on the role of privately informed investors who influence prices through their trades. But in many cases the agents who have the biggest information advantage are insiders or the firms themselves; they are precluded from trading but can affect the information flow to the market. This endogenous information flow and its effect on financial market is the focus of the proposed project.
By the term information flow we refer to a wide range of channels through which firms can communicate. The information can be part of a mandatory disclosure or a voluntary one. It can be verifiable or non-verifiable information. In addition there can be an implicit information transmission. A firm may choose certain actions to convey its private information (i.e. signaling) without any explicit announcements.
The way firms convey this information may provide key insights into the behavior of financial markets and in particular the development of financial crises. The project combines theoretical and empirical work. In the theory part I plan to examine the channels mentioned above and develop testable implications. In the empirical part I plan to test these implications.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
ERC-2010-StG_20091209
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Host institution
91904 JERUSALEM
Israel
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.