This paper presents a model of international asset pricing in the presence of shadow costs of incomplete information. The model shows that the exchange rate risk is priced in an international setting. The home bias equity is explained by the shadow costs of incomplete information. These costs...

This paper presents a simple framework for the use of traditional capital budgeting models and the valuation of several real options in the presence of shadow costs of incomplete information. Information costs can be viewed as sunk costs in the spirit of Merton’s (1987) model of capital market...

Cet article examine si la valeur d’une entreprise exportatrice française est affectée par les fluctuations contemporaines et retardées du taux de change. En se basant sur un ´échantillon de 100 entreprises exportatrices françaises, l’´étude trouve que 22% des entreprises connaissent...