The real impact of stock market mispricing — evidence from Australia
Data(s) |
01/09/2007
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Resumo |
Using a large panel of Australian firms, we investigate if mispricing in the stock market has an impact on firm-level investment. A significantly positive relation is documented between investment and theproxies for mispricing, suggesting that overpriced (underpriced) firms tend to overinvest (underinvest). Furthermore, we find that equity-dependent firms display a more pronounced sensitivity of investment to stock misvaluation than do nonequity-dependent firms. Taken together, our findings evidence that mispricing in Australian capital markets may have significant influence on the real economy, and the influence works though an equity-financing channel.© 2007 Elsevier B.V. All rights reserved. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Elsevier |
Relação |
http://dro.deakin.edu.au/eserv/DU:30085867/chang-realimpactof-2007.pdf http://www.dx.doi.org/10.1016/j.pacfin.2006.06.003 |
Direitos |
2007, Elsevier B.V. |
Palavras-Chave | #Investment-Q sensitivity #Market inefficiency #Equity dependence #Investment #Australian firms |
Tipo |
Journal Article |