Does the stock market make firms more productive?

• 成果类型: Article
• 署名作者: Bennett, Benjamin; Stulz, Rene; Wang, Zexi
• 署名单位: Tulane University; National Bureau of Economic Research; University System of Ohio; Ohio State University; University System of Ohio; Ohio State University; Lancaster University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.09.006
• 发表日期: 2020
• 页码: 281-306
• 关键词: Stock price informativeness; TFP; Firm efficiency

摘要

Management, directly or indirectly, learns from its firm's stock price, so a more informative stock price should make the firm more productive. We show that stock price informativeness increases firm productivity. We provide direct evidence of one channel through which stock price informativeness affects productivity; specifically, we find that CEO turnover is less sensitive to Tobin's q when informativeness is lower. We predict and confirm that the productivity of smaller and younger firms, better governed firms, more specialized firms, and firms with more competition is more strongly related to the informativeness of their stock price. We further address endogeneity concerns with the use of brokerage closures, S&P 500 additions, and mutual fund redemptions as plausibly exogenous events. (C) 2019 Elsevier B.V. All rights reserved.