This paper examines the propensity of firms to comove in investment decisions. Although stock return comovement and … herding among investors received considerable attention in existing work, little is known about correlated investment behavior … firms imitate other firms and rely on public information rather than on firm specific private information about investment …

We investigate whether short-termism distorts the investment decisions of stock market listed firms. To do so, we … compare the investment behavior of observably similar public and private firms using a new data source on private U.S. firms … compared to private firms, public firms invest substantially less and are less responsive to changes in investment …

We document sizeable and surprising differences in investment behavior between stock market listed and privately held … responsive to changes in investment opportunities compared to matched private firms, even during the recent financial crisis … that investment behavior diverges most strongly in industries in which stock prices are particularly sensitive to current …

We investigate the role of financialization in the decline of investment for U.S. non-financial firms from 1992 - 2017 … to divert resources from real investment to share repurchases to increase stock prices. Using micro-data from U.S. firms … repurchases on capital investment; (ii) to examine the interaction between stock-based CEO pay and the likelihood of share …

managerial overconfidence can account for investment distortion. Consistent with CEO rationality, this paper provides an … investment. When firms are overvalued or have better growth opportunities, CEOs are more likely to postpone their option exercise … and at the same time invest more using internal cash. Moreover, CEO late option exercise fails to explain investment …

countries, industry sector of the company making the IT investment has little effect on the market reaction. Also similar to the …

We investigate the link between corporate investment and the momentum effect in stock returns. We argue that the … market investors and firm insiders regarding the firm’s investment opportunities. Our theoretical setup predicts that past … winners (losers) are likely to increase (decrease) their net investment, and the more they invest (disinvest) the more likely …

Peers' valuation matters for firms' investment: a one standard deviation increase in peers' valuation is associated … with a 5.9% increase in corporate investment. This association is stronger when a firm's stock price informativeness is … lower or when its managers appear less informed. Also, the sensitivity of a firm's investment to its stock price is lower …

This study establishes a link between corporate investment and short-term return reversal by addressing the role of … corporate investment in shaping stock liquidity. We find that short-term return reversal is less pronounced for stocks with high … corporate investment. Moreover, the analysis shows that corporate investment indeed attenuates the short-term return reversal …

After stock return anomalies are published in academic journals, corporate investment becomes more sensitive to stock … prices. Analyses of insider trading, investors’ private information, future firm performance, and sensitivity of investment … to cash flow collectively suggest that this increase in investment-price sensitivity is due to the fact that publication …