Tenure Track Seminar - Miguel Karlo de Jesús Reyes

Miguel De Jesús (CUNEF Universidad, Madrid) will present his paper “Information Processing Frictions and Price Informativeness: Evidence from a Natural Experiment,” coauthored by Ariadna Dumitrescu (CUNEF Universidad). Please find the abstract below.

The invited speaker is interested in a job tenure track in the department (Area: Finance/Accounting)

Abstract

Frictions during information acquisition and integration impede price discovery. We isolate frictions specific to these stages of information processing by leveraging a policy that trig- gered unsuccessful requests to the Securities and Exchange Commission’s online repos- itory of company reports. We show that, while having more potential viewers of newly published filings is positively associated with price informativeness, greater exposure of these users to failed requests weakens this relationship. Moreover, price informativeness decreases if users successfully download new disclosures from other firms. These findings also provide empirical evidence for the three-step framework proposed in the literature to understand investors’ use of information.