Stock Price Informativeness and Investment-Cash Flow Sensitivity
Durnev, Morck and Yeung(2004a) show that more informative stock prices facilitate more efficient corporate investment. I first show how stock prices informativeness affect firms investment-cash flow sensitivity. Using Chinas listed companies from manufacturing industry between 2001 and 2008, I find strong negative relations between stock prices informativeness and investment-cash flow sensitivity, the investment-cash flow sensitivity decreases significantly with increasing stock price informativeness. The empirical results also strongly support the point that more informative stock price facilitate more efficient capital allocation.
stock price informativeness investment-cash flow sensitivity efficiency of capital allocation asymmetric information
Jiwei Yang
Business School Central South University Changsha, China
国际会议
西安
英文
510-514
2010-08-07（万方平台首次上网日期，不代表论文的发表时间）