Firm-specific information and the efficiency of investment

• 成果类型: Article
• 署名作者: Chari, Anusha; Henry, Peter Blair
• 署名单位: Stanford University; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2007.03.008
• 发表日期: 2008
• 页码: 636-655
• 关键词: capital account liberalization; INVESTMENT; GROWTH; Firm-level data

摘要

In the three-year period following stock market liberalizations, the growth rate of the typical firm's capital stock exceeds its pre-liberalization mean by an average of 4.1 percentage points. Cross-sectional changes in investment are significantly correlated with the signals about fundamentals embedded in the stock price changes that occur upon liberalization. Panel-data estimations show that a 10-percentage point increase in a firm's expected future sales growth predicts a 2.9- to 3.5-percentage point increase in the growth rate of its capital stock. Country-specific changes in the cost of capital drive changes in investment but firm-specific changes in the cost of capital do not. (C) 2007 Elsevier B.V. All rights reserved.