Manipulation and the Allocational Role of Prices

By Itay Goldstein, Alexander Guembel. 2008

467 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3d2dabe7aee0b37c605cd45f64299655b9b0d265

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Citations in the corpus

Market-Based Corrective Actions (2010, background): “Gorton (1997); Fulghieri and Lukin (2001); Goldstein and Guembel (2008); Bond and Eraslan (2008); and Dow, Goldstein, and Guembel (2008).”
The Real Effects of Financial Markets (2012, unknown): “Goldstein and Guembel (2008) consider a model where the manager of the firm learns from the stock price about the profitability of an investment project.”
Government Intervention and Information Aggregation by Prices: Government Intervention and Information Aggregation by Prices (2015, unknown): “In particular, it complements papers such as Bernanke andWoodford (1997), Goldstein and Guembel (2008), Bond, Goldstein and Prescott (2010), Dow, Goldstein and Guembel (2010), and Lehar, Seppi and Strobl (2010), which analyze distinct mechanisms via which the use of price information in real…”
The Real Effects of Short-Selling Constraints (2014, unknown): “For example, in Goldstein and Guembel (2008), an exogenous change in”
Trading Frenzies and Their Impact on Real Investment (2013, background): “The basic motivation for this literature goes back to Hayek (1945), who posits that market prices provide an important source of information for various decision makers. A number of papers provide empirical evidence for this link. Luo (2005) shows that an abnormal decrease in stock price following a”
Learning from Peers' Stock Prices and Corporate Investment (2014, background): “…not the case in which they also learn from their peers (see, for instance, Bresnahan, Milgrom; and Paul, 1992; Dow and Gorton, 1997; Subrahmanyam and Titman, 1999; Goldstein and Guembel, 2008; Foucault and Gehrig, 2008; Dow, Goldstein, and Guembel, 2011; and Edmans, Goldstein, and Jiang, 2013).”
Short Selling and the Price Discovery Process (2013, background): “Related theoretical work focusing on the link between the informativeness of market prices and corporate decisions includes, among others, Tobin (1969), Dow and Gorton (1997), Subrahmanyam and Titman (2001), and Goldstein and Guembel (2008). Also related are recent empirical studies on seasoned equi”
Incentives for Information Production in Markets where Prices Affect Real Investment (2016, unknown): “ = 2 2 ln 1 2 −  − 1 2 +  −  (21)”
Blockholders and Corporate Governance (2014, unknown): “Khanna & Mathews (2012) build on Goldstein & Guembel (2008), where an uninformed speculator (with an initial stake of zero) may manipulate the stock price downward by short selling.”
Ownership Structure , Limits to Arbitrage and Stock Returns: Evidence from Equity Lending Markets (2016, unknown): “Bakke and Whited (2010), Chen et al. (2010), and Edmans et al. (2012) find that stock prices feed back into management decisions about investment and takeovers, and Goldstein and Guembel (2008) show that a speculator may manipulate prices by short selling with the objective of distorting investment.”
Price Informativeness and Investment Sensitivity to Stock Price (2007, unknown): “On the other hand, as Goldstein and Guembel (2005) showed, the feedback effect from prices to the real economy may make price manipulation possible, which can cause inefficiencies in the real economy.”