Chirinko, Robert S.; Schaller, Huntley - Harris School of Public Policy, University of Chicago - 1992
if there are "bubbles", they may not distort real behaviour if managers base investment decisions on fundamentals. Using … a new specification testing strategy based on combining Q and Euler equations, we find that managers base investment … decisions on fundamentals despite stock market bubbles. Three types of collateral evidence reinforce this interpretation. We …