Question
one of the reasons why internal capital markets maybe more efficient then external capital markets is that firms masy not want to reveal full information
one of the reasons why internal capital markets maybe more efficient then external capital markets is that firms masy not want to reveal full information alert their sources of competitive advantage to external capital markets in order to reduce the threat of competitive imitation.
They suggest that external capital market may systematically undervalue firms with competitive advantage that are subject to imitation. Do you agree with this analysis, if yes how could you trade with this information in your own investment activities? If no why not
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