Asset markets are frequently restructured through mergers, acquisitions, and securitization. Corporate restructuring activities reallocate assets across firms. The cumulative magnitude of corporate restructuring deals is so significant and durable at the macro level that they can have the...

Firms significantly reduce their investment in response to non-fundamental drops in the stock price of their product-market peers. We argue that this result arises because of managers' limited ability to filter out the noise in stock prices when using them as signals about their investment...