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How do empirical finance researchers measure stock price informativeness (e.g. the measures used by Chen, Goldstein, and Jiang, Review of Financial Studies, 2007)? What
How do empirical finance researchers measure stock price informativeness (e.g. the measures used by Chen, Goldstein, and Jiang, Review of Financial Studies, 2007)? What effect of price informativeness on corporate investment do you expect? Support your answers with relevant literature and empirical findings. [10 marks]
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Measuring stock price informativeness is a crucial task in empirical finance research One commonly used measure of price informativeness is the Rsquared of a regression of future earnings or cash flow...Get Instant Access to Expert-Tailored Solutions
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