Information: Hard and soft

Jose Marıa Liberti, Mitchell A. Petersen*

*Corresponding author for this work

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

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
Volume8
Issue number1
DOIs
StatePublished - Jan 1 2019

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Business and International Management

Fingerprint Dive into the research topics of 'Information: Hard and soft'. Together they form a unique fingerprint.

  • Cite this