Earticle

초록

영어

Stock prices of publicly traded firms can affect the investment decisions of private firms in the same industry both beneficially—by providing relevant industry- and market-wide information— and detrimentally—by overwhelming private firm’s own information set. Using data from Korea for the period of 2000-2013, we find evidence of negative externalities. Specifically, we find that the investment decisions of private firms are associated more with the relatively noisier KOSDAQ peer q-ratio than with the KOSPI peer q-ratio. Also, the relationship between private-firm investment and public-peer q is present regardless of the fundamental correlation between private firms and their public peers. The relationship is also more pronounced when private firms have negative cashflows. Further analysis indicates that the observed relationship between private-firm investment and public-peer q can hardly be consistent with private firms’ rational learning.

목차

Abstract
 Abstract
 1. Introduction
 2. Sample and data
 3. Empirical results
  3.1. Baseline result: Relationship between private-firm investment and public-peer q
  3.2. Tests
  3.3. Additional tests
  3.3. Financing of private firms and public-peer q
 4. Conclusions
 References

키워드

저자

• Hee Jung Choi [ Korea University Business School (KUBS), Seoul, Korea ]
• Dong Wook Lee [ Korea University Business School (KUBS), Seoul, Korea ] Corresponding author

참고문헌

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330