New study reveals how information risk impacts financial markets equilibrium!
Information risk is a key factor in financial markets that can impact returns and strategies. A study analyzed data from European markets over 15 years to identify drivers of information risk. The results show that information risk can influence market equilibrium at both systematic and industry-specific levels. Long-term investors, stock pickers, and market timers can use these determinants to make informed decisions. The findings suggest the need for effective financial communication policies for investor relations and potential regulatory changes.