Learning from peers' stock prices and corporate investment

• 成果类型: Article
• 署名作者: Foucault, Thierry; Fresard, Laurent
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.11.006
• 发表日期: 2014
• 页码: 554-577
• 关键词: Corporate investment; Managerial learning; peers; Informed trading

摘要

Peers' valuation matters for firms' investment: a one standard deviation increase in peers' valuation is associated with a 5.9% increase in corporate investment. This association is stronger when a firm's stock price informativeness is lower or when its managers appear less informed. Also, the sensitivity of a firm's investment to its stock price is lower when its peers' stock price informativeness is higher or when demands for its products and its peers' products are more correlated. Furthermore, the sensitivity of firms' investment to their peers' valuation drops significantly after going public. These findings are uniquely predicted by a model in which managers learn information from their peers' valuation. (C) 2013 Elsevier B.V. All rights reserved.