In concluding that only systematic risk matters, finance theory assumes that frictions in capital markets are negligible. The absence of frictions implies that all market participants become as costlessly and equally informed as everyone else — that is, no individual is more informed than others or, to use a technical term, there is no information asymmetry. This assumption, combined with several other assumptions, implies … [ Read more ]
Content: Quotation | Authors: David Phillips, Philip Wright | Source: European Business Forum (EBF) | Subjects: Economics, Finance
Ground breaking research by MIT examines the relationship between information disclosure and a company’s cost of capital.
Content: Article | Authors: David Phillips, Philip Wright | Source: European Business Forum (EBF) | Subject: Finance
Companies today can no longer give a full picture of their value using traditional methods. There is now no excuse for failing to give the market what it wants.
Editor’s Note: see more details of the PwC ValueReporting framework at
Content: Article | Author: David Phillips | Source: European Business Forum (EBF) | Subjects: Accounting, Finance