European Financial and Accounting Journal 2012, 7(1):62-73 | DOI: 10.18267/j.efaj.15

The Macroeconomic Effects of Information Asymmetry in the Capital Markets

Robert G. Kuklik
Robert G. Kuklik, MBA - Ph.D. student; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic; <elf.rob@centrum.cz>.

It is possible to say that no matter how the Efficient Market Hypothesis has been criticized and/or overhauled, a degree of the relevant data proliferation is crucial to the investor's decision making process. The information asymmetry is then a phenomenon which creates distortions in a performance of the capital market. The "pseudoeffective" market model is attempting to highlight the impact of this phenomenon on some macroeconomic variables conducive to the general economic equilibrium.

Keywords: Actual return, Effective market equilibrium, Information asymmetry, IS-LM framework., Pseudoeffective market model
JEL classification: G14

Published: March 1, 2012  Show citation

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Kuklik, R.G. (2012). The Macroeconomic Effects of Information Asymmetry in the Capital Markets. European Financial and Accounting Journal, 7(1), 62-73. doi: 10.18267/j.efaj.15
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