Investment, inflation, and the role of internal information systems as a transmission channel

• 成果类型: Article
• 署名作者: Binz, Oliver; Ferracuti, Elia; Joos, Peter
• 署名单位: INSEAD Business School; Duke University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2023.101632
• 发表日期: 2023
• 关键词: macroeconomic uncertainty; keynesian economics; management; MARKET; FIRMS; prices; determinants; ORGANIZATION; expectations; association

摘要

We examine whether the quality of firms' internal information systems influences the relation between inflation shocks and corporate investment, as posited by imperfect information models. Inconsistent with RBC models' prediction that nominal variables (e.g., inflation) do not affect real variables (e.g., corporate investment) but consistent with the presence of information frictions, we first document a positive relation between inflation shocks and firm-level investment. Next, we show that higher internal information system quality, measured through responses to the World Management Survey, mitigates the positive relation between inflation shocks and firm-level investment. This result suggests that internal information quality serves as a channel through which aggregate-level nominal variables affect firm-level real variables. We then document that firms with higher internal information system quality make relatively more efficient investment decisions following inflation shocks. Our inferences are robust to using the 8th EU Company Law Directive as a shock to internal information system quality and to several additional tests. (c) 2023 Elsevier B.V. All rights reserved.