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It is commonly believed that stock prices help firms' managers make more efficient real investment decisions, because they aggregate information about fundamentals that is not otherwise known to managers. This paper identifies a limitation to this view. It shows that if informed traders internalize that firms use prices as a signal, stock price informativeness depends on the quality of managers' prior information. In particular, managers with low quality information would like to learn about their own fundamentals by relying on the information aggregated in the stock price. However, in this case, the profitability of trading falls for informed speculators, who therefore reduce their trading volume, reducing the informativeness of prices. As a result, stock prices are not as useful in guiding capital toward its most productive use, leading to inefficient investment decisions. Using a sample of U.S. publicly traded companies between 1990 and 2010, the paper documents a positive correlation between the quality of managerial information and stock price informativeness. Contrary to the conventional view that less informed managers should rely more on stock prices when making investment decisions, the author finds no differences in the sensitivity of investment to stock prices for different levels of managerial information. The evidence suggests that while firms do learn from prices, the learning channel and its effects on real investment are limited.

Asymmetric Information --- Debt Markets --- Economic Theory & Research --- Emerging Markets --- Feedback Effects --- Finance and Financial Sector Development --- Investment & Investment Climate --- Macroeconomics and Economic Growth --- Markets & Market Access --- Private Sector Development --- Strategic Interactions

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How do terrorist groups control their members? Do the tools groups use to monitor their operatives and enforce discipline create security vulnerabilities that governments can exploit? This title examines the great variation in how terrorist groups are structured.

TERRORISM --- TERRORISTS --- Polemology --- Organization theory --- Terrorists. --- Terrorism. --- Acts of terrorism --- Attacks, Terrorist --- Global terrorism --- International terrorism --- Political terrorism --- Terror attacks --- Terrorist acts --- Terrorist attacks --- World terrorism --- Direct action --- Insurgency --- Political crimes and offenses --- Subversive activities --- Political violence --- Terror --- Criminals --- Violent crimes --- Organized crime --- Organizational behavior. --- History. --- Behavior in organizations --- Management --- Organization --- Psychology, Industrial --- Social psychology --- Crime syndicates --- Organised crime --- Crime --- Fatah. --- Hamas. --- Islamist groups. --- Islamist terrorism. --- Middle East. --- Northern Ireland. --- Palestinian terrorist groups. --- Provisional IRA. --- Russian terrorist groups. --- Tsarist secret police. --- Ulster Defense Association. --- Ulster Volunteer Force. --- agency problems. --- agency theory. --- al-Qa'ida in Iraq. --- al-Qa'ida. --- bureaucracy. --- control. --- counterterror policies. --- counterterrorism policies. --- discrimination. --- group-specific vulnerabilities. --- hierarchy. --- internal dynamics. --- internal politics. --- managerial challenges. --- managerial problems. --- negotiated settlement. --- operational management. --- organizational analysis. --- organizational challenges. --- organizational dynamics. --- organizational resources. --- political goals. --- preference divergence. --- secrecy. --- secular nationalist groups. --- security reducing. --- security risks. --- security-control tradeoff. --- strategic interactions. --- terrorism. --- terrorist activity. --- terrorist group structure. --- terrorist groups. --- terrorist leaders. --- terrorist operatives. --- terrorist organizations. --- terrorists. --- uncertainty. --- violence.