Loading...
Please wait, while we are loading the content...
Similar Documents
Does the Stock Market Make Firms More Productive?
| Content Provider | Scilit |
|---|---|
| Author | Bennett, Benjamin Stulz, Renn M. Wang, Zexi |
| Copyright Year | 2017 |
| Description | Journal: SSRN Electronic Journal We test the hypothesis that greater stock price informativeness (SPI) leads to higher firm-level productivity (TFP). Management, directly or indirectly, learns more from more informative stock prices, so that more informative stock prices should make firms more productive. We find a positive relation between SPI and TFP. The relation is stronger for smaller, younger, riskier, less capital-intensive, and financially-constrained firms. Product market competition and better governance amplify the relation, while diversification weakens it. We address endogeneity concerns with fixed effects, instrumental variables, and the use of brokerage house research department closures and S&P 500 additions as plausibly exogenous events. |
| Related Links | http://www.nber.org/papers/w24102.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3080957 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3080957 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2017-11-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Stock Price Informativeness Private Information |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |