Abstract
Disclosure of financial information is essential for the well-functioning of capital markets. However, there exist several market frictions in the supply and demand of disclosure, and the different aspects of the disclosure process, that lead to sub-optimal outcomes. The constantly changing information environment and several recent developments in capital markets highlight the need of understanding the role of financial information and market frictions in the financial information environment in a broader perspective. This dissertation examines three interventions and attempts aimed at resolving market frictions with the goal of improving the financial information environment in different aspects, ultimately benefiting capital markets. Focusing on regulating disclosure to increase transparency, Chapter 2 finds that while introducing disclosure regulation in the nascent crypto token market is perceived to be costly by investors, transparency matters. Next, focusing on enhancing trust in capital markets, Chapter 3 finds, if any, a limited impact of mandating public company audits following the Securities Exchange Act of 1934. Lastly, focusing on the role of new information intermediaries in the information environment and capital markets, Chapter 4 finds that capital markets benefit significantly from the increase in higher quality information available for firms that previously lacked it, after the introduction of specific financial incentives by a information intermediary that focus on increasing information for these firms. In sum, the three studies that form this dissertation build on the understanding of the constantly changing information environment and the role of regulators, gate-keepers and intermediaries in addressing market frictions.
Original language | English |
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Awarding Institution |
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Supervisors/Advisors |
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Award date | 25 Nov 2022 |
Place of Publication | Rotterdam |
Print ISBNs | 978-90-5892-647-0 |
Publication status | Published - 25 Nov 2022 |
Series
- ERIM PhD Series Research in Management