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Financial Literacy and Stock Price Informativeness: a Cross-Country Study

Financial Literacy and Stock Price Informativeness: a Cross-Country Study AbstractThis paper examines the impact of financial literacy on stock price informativeness in a sample of firms from 20 countries. Using four measures of stock price informativeness, we find a significant relationship between higher financial literacy and higher stock price informativeness. The individual investors’ contribution regarding the incorporation of specific information into stock prices includes private information also and not mere specific information in the general sense. Financial knowledge is the key element that helps individual investors to incorporate specific information into stock prices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Studia Universitatis Babe-Bolyai Oeconomica de Gruyter

Financial Literacy and Stock Price Informativeness: a Cross-Country Study

Studia Universitatis Babe-Bolyai Oeconomica , Volume 63 (1): 10 – Apr 1, 2018

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Publisher
de Gruyter
Copyright
© 2018 Anita Todea, published by Sciendo
ISSN
2065-9644
eISSN
2065-9644
DOI
10.2478/subboec-2018-0004
Publisher site
See Article on Publisher Site

Abstract

AbstractThis paper examines the impact of financial literacy on stock price informativeness in a sample of firms from 20 countries. Using four measures of stock price informativeness, we find a significant relationship between higher financial literacy and higher stock price informativeness. The individual investors’ contribution regarding the incorporation of specific information into stock prices includes private information also and not mere specific information in the general sense. Financial knowledge is the key element that helps individual investors to incorporate specific information into stock prices.

Journal

Studia Universitatis Babe-Bolyai Oeconomicade Gruyter

Published: Apr 1, 2018

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