We examine the impact of mutual fund ownership on stock price informativeness in China. Existing evidence shows that … stock price informativeness is low in China, and attributes this to firms’ lack of disclosure incentives under the weak … investors for capital. Indeed, we find that mutual fund ownership is positively related to share price informativeness, but this …

their welfare. Intuitively, as overconfidence goes up, so does price informativeness, which makes rational agents cut their …