This study examines how aggregation in financial reporting leads to information loss using a sample of firms that report individual financial assets. The level of information loss increases with the level of aggregation; however, combining assets with similar risk-factor exposures mitigates this...

This paper examines the role of financial frictions on the trading of emission allowances. Based on a wide international sample of firms and data from the European Union Emission Trading System (the most liquid and developed in the world) we document that firms with liquidity needs are...