This paper delves further into the link between residual government ownership and corporate investment efficiency in … lower level of investment efficiency. The finding suggests that government ownership is less beneficial in privatized firms …

-held firms. An economic competition hypothesis predicts a negative relation because misvaluation-induced new investment by public … firms crowds out investment by private firms when they share common input or output markets. An alternative shared sentiment …-peer misvaluation and private firm investment. Our results indicate that private firms finance misvaluation-induced investment primarily …