make the firm more productive. We show that stock price informativeness increases firm productivity. We predict and confirm … that the productivity of smaller and younger firms, better governed firms, more specialized firms, and firms with more …

model. We show that this result hinges on a cointegrating relationship between TFP and stock prices that is not stationary …, thus making the estimates not reliable. If we alter the TFP measure and change the model specification, we can recover the …