This study examines how equity market fragmentation affects firms’ capital investment decisions. Recent empirical … precision information to managers and/or creditors about firms’ investment opportunities. Consistent with this notion, our … findings reveal that the association between capital investment and investment opportunities is increasing in market …

setting using investment level data. We find allocative inefficiency across ownership to be exacerbated under policy … more capital in certain markets even after returns on investment are dampened by negative policy shocks, suggesting that …

This paper examines the effect of board governance on investment efficiency. I use the staggered enactment of board … find that investment–Q sensitivity improves by almost half post-reform. This effect is more pronounced for firms that are … suggest that increased board oversight strengthens managers’ incentives to make investment decisions that are more in line …

of stock market liberalization on corporate investment and address some of the data and methodological concerns raised in … previous studies. Our difference-in-differences analysis shows that the reform boosts the investment of investable firms … relative to non-investable firms. It also makes the investable firms' investment more responsive to growth opportunities …

We document sizeable and surprising differences in investment behavior between stock market listed and privately held … responsive to changes in investment opportunities compared to matched private firms, even during the recent financial crisis … that investment behavior diverges most strongly in industries in which stock prices are particularly sensitive to current …

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 … compared to private firms, public firms invest substantially less and are less responsive to changes in investment …

This paper examines the propensity of firms to comove in investment decisions. Although stock return comovement and … herding among investors received considerable attention in existing work, little is known about correlated investment behavior … firms imitate other firms and rely on public information rather than on firm specific private information about investment …

We study the driving forces behind the observed positive association between corporate investment and stock market … valuation, and how it interacts with managerial equity incentives and informativeness of investment. We build a dynamic model … where managers use investment choices to influence investors' opinions about firms' future prospects and increase the market …