Does the stock market affect firm investment in China? A price informativeness perspective

作者：Wang Yaping^*; Wu Liansheng; Yang Yunhong

来源：Journal of Banking & Finance, 2009, 33(1): 53-62.

DOI：10.1016/j.jbankfin.2006.12.013

• Firm-level investment
• Tobin's Q
• Informativeness
• Chinese economy

This paper investigates the empirical relationship between firm-level investment and the stock market in China front a price informativeness perspective. We find that firm investment does not significantly respond to the stock market valuation, because stock prices contain very little extra information about the future operating performance: of firms. This finding is further Supported by the relative investment response test and the relative price information content test based on the informativeness proxy of price non-synchronicity combined with firm information transparency.

• 出版日期2009-1
• 单位北京大学