Market-Based Corrective Actions

• 成果类型: Article
• 署名作者: Bond, Philip; Goldstein, Itay; Prescott, Edward Simpson
• 署名单位: University of Pennsylvania; Federal Reserve System - USA; Federal Reserve Bank - Richmond
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhp059
• 发表日期: 2010
• 页码: 781
• 关键词: PRICE INFORMATIVENESS; SHAREHOLDER ACTIVISM; EFFICIENCY; equity; FIRMS

摘要

Many economic agents take corrective actions based on information inferred from market prices of firms' securities. Examples include directors and activists intervening in the management of firms and bank supervisors taking actions to improve the health of financial institutions. We provide an equilibrium analysis of such situations in light of a key problem: if agents use market prices when deciding on corrective actions, prices adjust to reflect this use and potentially become less revealing. We show that market information and agents' information are complementary, and discuss measures that can increase agents' ability to learn from market prices. (JEL D53, D80, G14, G21, G28, G34)