["Attention General Equilibrium shoppers, the equilibrium level of malfeasance is available on aisle
4"]
http://www.anderson.ucla.edu/acad_unit/finance/wp/2002/12-02.pdf
Chicanery, Intelligence and Financial Market Equilibrium Avanidhar Subrahmanyam
I see the abstract ends:
firms where managers fudge financial reports can be very liquid with little information asymmetry in financial markets but substantial information asymmetry between management and outside investors.
Could this mean that on the whole most companies present their financial reports the same way, so there is little asymmetry on the financial markets - it is only in times of general financial crisis that the underlying asymmetry of information between outside investors and their deceptive well-paid elite executives becomes antagonistic?
Sorry if the answer is buried in the article but it is likely to be opaquely expressed anyway.
Chris Burford London
