TY - JOUR
T1 - Information
T2 - Hard and soft
AU - Liberti, Jose Marıa
AU - Petersen, Mitchell A.
N1 - Publisher Copyright:
© The Author(s) 2018. Published by Oxford University Press on behalf of The Society for Financial Studies.
PY - 2019/3/1
Y1 - 2019/3/1
N2 - 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.
AB - 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.
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U2 - 10.1093/rcfs/cfy009
DO - 10.1093/rcfs/cfy009
M3 - Article
AN - SCOPUS:85067098381
SN - 2046-9128
VL - 8
SP - 1
EP - 41
JO - Review of Corporate Finance Studies
JF - Review of Corporate Finance Studies
IS - 1
ER -