Titman, Sheridan; Wei, K.C. John; Xie, Feixue - In: International Review of Finance 9 (2009) 1-2, pp. 111-131
The negative relation between capital investments and subsequent stock returns, found in the United States, is not observed in Japan, which is inconsistent with the risk-based explanation. More specifically, we find no significant relation between capital expenditures ("CE") and subsequent stock...
