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In games with strategic complementarities, public information about the state of the world has a larger impact on equilibrium actions than private information of the same precision, because the former is more informative about the likely behavior of others. This may lead to welfare-reducing “overreactions” to public signals as shown by Morris and Shin (2002). Recent experiments on games with strategic complementarities show that subjects attach a lower weight to public signals than theoretically predicted. The purpose of this paper is to reconsider the welfare effects of public signals accounting for the weights observed in experiments.

Aggregate behavior observed in experiments on games with strategic complementarities can be explained by a cognitive hierarchy model where subjects employ limited levels of reasoning. They respond in a rational way to the non-strategic part of a game and they account for other players responding rationally, but they neglect that other players also account for others’ rationality. This paper analyzes the welfare effects of public information under such limited levels of reasoning.

In the model by Morris and Shin (2002) public information is always welfare improving if strategies are derived from such low reasoning levels. The optimal degree of publicity is decreasing in the levels of reasoning. For the observed average level of reasoning, full transparency is optimal, if public information is more precise than private information. If the policy maker has instruments that are perfect substitutes to private actions, the government should secretly respond to its information without disclosing or signaling it to the private sector independent of the degree of private agents’ rationality.

This paper takes experimental evidence back to theory and shows that the main result obtained by the theory under rational behavior breaks down if theory accounts for the bounded rationality observed in experiments.

Drawing inspiration from the organizational information processing theory, the technology acceptance model (TAM) and the theory of motivation, this study aims to examine the acceptance of private and public blockchain technology-based collaboration among supply chain practitioners.

A total of 257 samples were collected through a survey from supply chain practitioners. The study used parallel mediators of perceived usefulness (extrinsic motivation) and perceived ease of use (intrinsic motivation) to measure behavioral intention to use.

The results reveal that partial mediation exists between blockchain-based collaboration (private and public) and behavioral intention to use. For perceived usefulness, a stronger mediating effect was found between private blockchain-based collaboration and behavioral intention to use. For perceived ease of use, a stronger mediating effect was found between public blockchain-based collaboration and behavioral intention to use.

By integrating insights from the organizational information processing theory, the TAM and the theory of motivation, this study provides an in-depth understanding of how the distinct features of information processing in blockchain technology-based collaboration influence the supply chain practitioners’ to accept it. The novelty and results of the study expand the existing literature and pave the way for future research.

This paper aims to explore how fund managers (FMs) deal with major problems of ignorance and uncertainty in stock selection and in asset allocation decisions.

Interviews were conducted with 40 fund managers in the period October 1997 to January 2000. A seven stage approach was adopted to sift through and process the large volumes of case data. The interview case data formed the basis for identifying common patterns and themes across the cases.

The case data revealed the nature of this private information agenda concerning intellectual capital or intangibles and the dynamic connections between these variables in the value creation process. The case data provided insight into how the book value and market value gap arose and the special role of information on intangibles and intellectual capital in valuing the company.

The fund management behaviour has important implications for regulatory policy issues on insider information, on corporate disclosure, the corporate governance role of financial institutions, and for the governance of financial institutions.

The paper focuses on issues of importance in an increasingly concentrated and global FM industry.

In the internet era, the boundaries between public and private lives of government employees are often blurred, resulting in enhanced concerns about administrative accountability and effectiveness. By adopting a multi-step qualitative methodology involving internet survey and analysis of illustrative examples, this research explores and examines how social media policies could assist in keeping the public and private lives of civil servants distinct. We find that very few public sector agencies have adopted social media policies in an attempt to regulate employee behavior. We conclude that social media sites, both private and official, could be an effective administrative tool if harnessed properly. We offer certain recommendations and strategies based on our findings that could assist in accomplishing the principles of ethical administration.

In the internet era, the boundaries between public and private lives of government employees are often blurred, resulting in enhanced concerns about administrative accountability and effectiveness. By adopting a multi-step qualitative methodology involving internet survey and analysis of illustrative examples, this research explores and examines how social media policies could assist in keeping the public and private lives of civil servants distinct. We find that very few public sector agencies have adopted social media policies in an attempt to regulate employee behavior. We conclude that social media sites, both private and official, could be an effective administrative tool if harnessed properly. We offer certain recommendations and strategies based on our findings that could assist in accomplishing the principles of ethical administration.

The purpose of this paper is to analyze the impact of public and private information of Tunisian firms on stock liquidity.

The paper uses a sample of 41 Tunisian firms listed in Tunis Stock Exchange for the year 2007. Public information disclosed in annual reports and in web sites is measured by two self‐constructed disclosure indexes. To assess private information the authors use imbalance order flows. The stock liquidity proxy used in the study is Liu's multidimensional measure. Ordinary least squares (OLS) regression is applied to model the relationship between firm's information environment and stock liquidity.

First, the results provide evidence that public and private information are independent. Second, Tunisian investors do not trust the information disclosed in both annual reports and web sites, consequently it has no effect on stock liquidity, in contrast with private information. This result implies that Tunisian investors are overconfident and rely only on their private information.

The paper's findings indicate that Tunisian regulation efforts to enhance corporate transparency are not sufficient. Hence, Tunisian firms need more incentives to disclose more information to investors.

This paper, to the authors’ best knowledge, is the first to investigate the effect of both private and public information on stock liquidity. Moreover, the authors were not limited to annual reports as the only source of public information, as were prior papers, because public information was assessed in both annual reports and corporate web sites.

The purpose of this paper is to empirically analyze the dynamic relationship between stock market and bond market based on the effect of different information shocks.

This paper decomposes the information of stock market and bond market into public information and private information. The characteristics of response of stock market and bond market to the information shocks are examined by SVAR model and modified BEKK model.

The study shows that the information shocks in financial market yield not only the effect on linear asset return but also the effect on nonlinear asset volatility. The public information mainly produces a short effect of return while the private information mainly produces a permanent effect on volume. The interactive relation between stock market and bond market is mainly reliant on the effect of the information shock volatility to market return volatility.

The paper empirically analyzes the influence characteristics of different information shocks, which has some reference value not only for deeply understanding the market microstructure but also for improving the construction of various capital markets.

The main aim of this paper is to empirically test at market level, the investors' differential reaction to information, contribution of their confidence level and adaptive behaviour to excessive market volatility in Indian stock market.

The Bivariate Vector Autoregression and Impulse Response Analysis are used to study whether investors over/under-react to private and public information. EGARCH models are used to study the contribution of investors' over/under-confidence and adaptive behaviour to excessive market volatility.

The investors over-react to private information and under-react to public information during pre-crash period, become overconfident and contribute to excessive volatility. They under-react to both private and public information during after-crash period, become under-confident and also conform to adaptive market hypothesis (AMH).

The empirical results of the study can help investors to minimize the negative impact of over/under-confidence on their expected utility.

The investors shall perform a post-analysis of investment, become aware of their past behavioural mistakes and start adapting to changing market conditions. This shall move the markets towards a new equilibrium in long run thus conforming AMH. However, the investors sometimes display an apparently irrational behaviour during this process.

To the best of the author's knowledge, this is the first study at market level data examining investors' over/under-reaction, over/under-confidence and adaptive behaviour in the context of stock market crash.

The purpose of this paper is to apply the strategic human resource management (HRM) perspective to investigate the schematic relationship between the dimensions of human resource (HR) capital information and intentions to use such information in individual investors’ decisions relating to investing equities in the banking industry.

A two-stage empirical study was conducted in 2010 using a four-part HR capital disclosure questionnaire, which was developed and validated in stage 1 (n=145) of the study. In stage 2 (n=157), current or previous shareholders in one of the Australian banking sector corporations participated in the study. The collected data were analyzed using confirmatory factor and logistic regression analyses.

The findings of this explorative study highlight that the individual investors’ perception on the importance of performance management dimension of HR capital information has varied impacts on their intentions to use such information in investment decisions to buy, hold on to, or sell stocks.

This study has made an important contribution to the strategic HRM and behavioral finance literature that the human capital information facilitates the propensity to avoid regrets in selling shares too early (dispositional effect bias) to achieve utility benefits in future which is different from the findings of financial information disclosure study.

A recent critical review of HR disclosure indicated that most of the published articles on HR capital have used company annual reports for data source. However, this is the first study that attempts to understand the impact of HR capital disclosure information on investment intentions from individual investors’ schema rather than drawing data from company annual reports.

This article aims to examine the link between uncertainty and analysts' reaction to earnings announcements for a sample of European firms during the period 1997-2007. In the same way as Daniel et al., the authors posit that overconfidence leads to an overreaction to private information followed by an underreaction when the information becomes public.

In this study, the authors test analysts' overconfidence through the overreaction preceding a public announcement followed by an underreaction after the announcement. If overconfidence occurs, over- and underreactions should be, respectively, observed before and after the public announcement. If uncertainty boosts overconfidence, the authors predict that these two combined misreactions should be stronger when uncertainty is higher. Uncertainty is defined according to technology intensity, and separate two types of firms: high-tech or low-tech. The authors use a sample of European firms during the period 1997-2007.

The results support the overconfidence hypothesis. The authors jointly observe the two phenomena of under- and overreaction. Overreaction occurs when the information has not yet been made public and disappears just after public release. The results also show that both effects are more important for the high-tech subsample. For robustness, the authors sort the sample using analyst forecast dispersion as a proxy for uncertainty and obtain similar results. The authors also document that the high-tech stocks crash in 2000-2001 moderated the overconfidence of analysts, which then strongly declined during the post-crash period.

This study offers interesting insights in two ways. First, in the area of financial markets, it provides a test of a major over- and underreaction model and implements it to analysts' reactions through their revisions (versus investors' reactions through stock returns). Second, in a broader way, it deals with the link between uncertainty and biases. The results are consistent with the experimental evidence and extend it to a cross-sectional analysis that reinforces it as pointed out by Kumar.