1 option
Does Firm-specific Information in Stock Prices Guide Capital Allocation? / Artyom Durnev, Randall Morck, Bernard Yeung.
- Format:
- Book
- Author/Creator:
- Durnev, Artyom.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w8093.
- NBER working paper series no. w8093
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2001.
- Summary:
- We show that firms in industries in which firm-specific stock price variation is larger use more external financing and allocate capital with greater precision in the sense that their marginal q ratios are closer to one. According to the Efficient Markets Hypothesis, greater firm-specific stock price variation reflects higher intensity firm-specific information capitalization in stock prices. We propose that higher firm-specific price variation may be an indicator of greater functional-form market efficiency in the sense of Tobin (1982).
- Notes:
- Print version record
- January 2001.
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