Information: Hard and soft

Jose Marıa Liberti, Mitchell A. Petersen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

214 Scopus citations


Information, which can arrive in multiple forms, is a fundamental component of all financial transactions and markets. We define hard and soft information and describe the relative advantages of each. Hard information is quantitative, is easy to store, and can be transmitted in impersonal ways. Its information content is independent of its collection. As technology changes, the way we collect, process, and communicate information, it changes the structure of markets, the design of financial intermediaries, and the incentives to use or misuse information. We survey the literature to understand how information type influences the continued evolution of financial markets and institutions.

Original languageEnglish (US)
Pages (from-to)1-41
Number of pages41
JournalReview of Corporate Finance Studies
Issue number1
StatePublished - Mar 1 2019

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics


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