New study reveals how information risk impacts financial markets equilibrium!
Information risk is a key factor in market dynamics, separate from market efficiency levels. A study analyzed 15 years of data from European markets to identify drivers of information risk. The results show that information risk can impact financial markets on a broad and industry-specific scale. Long-term investors, stock pickers, and market timers can use these findings to make informed decisions. The study suggests that financial communication policies for investor relations and regulatory targets should be based on these insights.