DocumentCode
2111813
Title
Stock Price Informativeness and Investment-Cash Flow Sensitivity
Author
Yang, Jiwei
Author_Institution
Bus. Sch., Central South Univ., Changsha, China
Volume
1
fYear
2010
fDate
7-8 Aug. 2010
Firstpage
510
Lastpage
514
Abstract
Durnev, Morck and Yeung(2004a) show that more informative stock prices facilitate more efficient corporate investment. I first show how stock prices informativeness affect firm´s investment-cash flow sensitivity. Using China´s 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.
Keywords
investment; stock markets; capital allocation; investment-cash flow sensitivity; stock price informativeness; Books; Companies; Economics; Industries; Investments; Resource management; Sensitivity; asymmetric information; efficiency of capital allocation; investment-cash flow sensitivity; stock price informativeness;
fLanguage
English
Publisher
ieee
Conference_Titel
Information Science and Management Engineering (ISME), 2010 International Conference of
Conference_Location
Xi´an
Print_ISBN
978-1-4244-7669-5
Electronic_ISBN
978-1-4244-7670-1
Type
conf
DOI
10.1109/ISME.2010.148
Filename
5573596
Link To Document