This paper examines the effect of a reduction in tick size on ex-dividend day stock price behavior by taking advantage of unique data for which there are no taxes on dividends and capital gains and tick size is fixed for all traded securities. These data allow us to differentiate among competing...

We study mechanisms whereby stock market valuations may color corporate investment by using European firm-level data. We find that managers vicariously learn from stock prices when making investment decisions. Specifically, managers' propensity to learn increases in stock price informativeness....

We document sizeable and surprising differences in investment behavior between stock market listed and privately held firms in the U.S. using a rich new data source on private firms. Listed firms invest substantially less and are less responsive to changes in investment opportunities compared to...

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, assuming for identification that closely held private...

The Working Capital Management (WCM) has an important role in the firm's success or failure because it directly effects the overall business health of the firm. This study examined the impact of WCM on profitability and shareholders wealth using the 50 companies listed in different sectors on...

This paper investigates investment behavior across public and privately held firms using a novel firm-level dataset. We use coarsened exact matching to construct a control group of firms with which we compare listed firms before and after listing in a difference-in-differences framework. The...

A recent reform in China, the Shanghai-Hong Kong Stock Connect program, made a subset of Chinese stocks investable for foreign investors, thus partially opening China's stock market. We use this reform to examine the quantity and quality effects of stock market liberalization on corporate...

This study examines the impact of stock market liberalization on corporate investment and its underlying mechanisms in the context of the Mainland–Hong Kong Stock Connect programs in China. The difference-in-differences estimation suggests that stock market liberalization improves corporate...