Information costs

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Information costs

Transactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs.

Information Costs

Costs that come from due diligence. That is, information costs include everything an individual or company spends when investigating whether a particular investment or activity is prudent and/or likely to be profitable.
References in periodicals archive ?
i] as the information cost rate on the market and [[sigma].
A man who spent 33 years in a United States jail for his role in a mob murder was freed last night after prosecutors acknowledged that the FBI's withholding of information cost him a fair trial.
c]): information cost regarding the firm's cash flows (and the real option).
It also modifies the influential theory that property law is heavily shaped by problems of high information costs: while existing accounts seem to suppose that property law entails relatively high information costs because it imposes a relatively broad set of duties on others, many of the information cost problems identified in the literature actually result from the mutual exclusivity problem, rather than from the breadth of property duties.
On the downside, these information cost savings may not "pin the tail on the donkey" regarding the maximization of shareholder value.
Thus, some private equity investors who bear the information cost may not face the liquidity issue caused by lock-ups but get the capped discount rate as compensation for incurring information cost.
The studies referred to in Table 2 were classified according to the nature of the effect of IFRS adoption, especially on information quality, information comparability, information cost, analysts, the capital and/or credit market, and information use.
Information cost development plays a major role in theories referring to a performance downswing in a phase of high or culturally unrelated internationalization involving strong organizational complexity.
While the basic accounts can be created free of cost, more meaningful alerts and information cost a price.
Merton (1987) asserted the importance of information cost and documented that an investor shall demand higher stock return if higher information cost is expensed.
19 -- Data breaches of patient information cost healthcare organizations nearly $6 billion annually, according to a new study.
The company said the theft of trade secrets and customer information cost companies an average of $2 million each last year.

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