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Comparing the Investment Behavior of Public and Private Firms / John Asker, Joan Farre-Mensa, Alexander Ljungqvist.
- Format:
- Book
- Author/Creator:
- Asker, John.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w17394.
- NBER working paper series no. w17394
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2011.
- Summary:
- We evaluate differences in investment behavior between stock market listed and privately held firms in the U.S. using a rich new data source on private firms. Listed firms invest less and are less responsive to changes in investment opportunities compared to observably similar, matched private firms, especially in industries in which stock prices are particularly sensitive to current earnings. These differences do not appear to be due to unobserved differences between public and private firms, how we measure investment opportunities, lifecycle differences, or our matching criteria. We suggest that the patterns we document are most consistent with theoretical models emphasizing the role of managerial myopia.
- Notes:
- Print version record
- September 2011.
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