We examine the association between active options market trading and the (in)efficiency of corporate investment in terms of deviation from optimal investment levels. Past research considers the volume of options trading as contributing to firms’ informational efficiency. Investment efficiency...

This Appendix reports results on several additional analyses conducted in order to lend support to and extend our baseline finding presented in the above-mentioned paper. These involve the use of an alternative method of measuring CS, an alternative method to measure investment opportunities,...

This study investigates into the real consequences of earnings management by classification shifting via examining its effect on corporate investment efficiency. The underlying expectation is that the way of reporting different items of profit within the income statement should induce...

Some investment decisions are exposed to uncertainty over their implementation phase apart from the underlying economic uncertainty. We provide a general way of introducing implementation uncertainty, which includes prior research as a special case. The generality of our treatment stems from the...

Many economic variables of interest exhibit a tendency to revert to predictable long-run levels. However, mean reverting processes are rarely used in investment models in the literature. In most models, geometric Brownian motion processes are used for tractability. In this paper, a firm's entry...