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We examined investment behavior in the Japanese manufacturing industry using investment revision data to analyze investment behavior from a fresh angle. We tested the martingale investment hypothesis and then the q-theory of investment by looking at the response of stock return and investment to...
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Fiscal announcements may transfer information about the government's view of the macroeconomic outlook to the private … interpreted as negative news by the stock market whereas exogenous fiscal interventions that do not convey any information about …
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