|Title:||Real effects of stock underpricing||Authors:||Hau, Harald
|Keywords:||Employment | Fire sales | Investment | Market inefficiency | Mutual funds||Issue Date:||1-May-2013||Publisher:||ELSEVIER SCIENCE SA||Journal Volume:||108||Journal Issue:||2||Start page/Pages:||392||Source:||Journal of Financial Economics||Abstract:||
This paper provides evidence for a causal effect of equity prices on corporate investment and employment. We use fire sales by distressed equity funds during the 2007-2009 financial crisis to identify substantial exogenous underpricing. Firms whose stocks are most underpriced have considerably lower investment and employment than industry peers not subject to any fire sale discount. The causal effect of underpricing on investment is found to be largely concentrated on the most financially constrained firms. © 2012 Elsevier B.V.
|Appears in Collections:||財務金融學系|
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