Stock Market Misvaluation and Corporate Investment

摘要：

This paper explores whether and why misvaluation affects corporate investment by com-paring tangible and intangible investments. We identify a stocks misvaluation by filtering growth prospects from market price. Capital,and especially R&D expenditures increase with overpricing,even after controlling for equity issuance; but only among overvalued firms. The sensitivity of capital expenditures to misvaluation is somewhat stronger among nancially constrained firms; this di?erential is strong and in the opposite direction for R&D. The effect of misvaluation on R&D is stronger for small firms,suggesting that this effect does not operate primarily through equity issuance. Over-all,our evidence supports several implications of the misvaluation hypothesis for the tangible and intangible components of investment.

作者: Ming Dong David Hirshleifer Siew Hong Teoh

作者单位: Schulich School of Business,York University,4700 Keele Street,Toronto,Ontario M3J 1P3,Canada Merage School of Business,University of California,Irvine

会议类型: 国际会议

会议名称: 2007年中国国际金融年会

会议地点: 成都

会议语种:英文

在线出版日期: 2007-07-09（万方平台首次上网日期，不代表论文的发表时间）