Liu, Jie; Lin, Gengyan; Liu, Zhen; Jiang, XiuJing - 2022
Employing geopolitical risk historical indices (GPR) developed by Caldara and Iacoviello (2022), this study investigates the relationship between GPR and information asymmetry, finding that GPR enlarges bid-ask spreads with increasing uncertainty about firm value. Empirical results indicate that...