Do mispricing and financial constraints matter for investment decisions?

被引：2
|
作者：
Liu, Chih-Liang [1 ]
Lin, Yi-Mien [2 ]
机构：
[1] Xiamen Univ, Inst Financial & Accounting Studies, Xiamen, Peoples R China
[2] Natl Chung Hsing Univ, Dept Accounting, Taichung, Taiwan
来源：
APPLIED ECONOMICS | 2018年 / 50卷 / 54期
关键词：
Mispricing; financing constraints; capital investment; precautionary motive; information asymmetry; INITIAL PUBLIC OFFERINGS; CORPORATE CASH HOLDINGS; ACCOUNTING INFORMATION; CAPITAL STRUCTURE; MARKET; EQUITY; QUALITY; FIRM; DISCLOSURE; EFFICIENCY;
D O I：
10.1080/00036846.2018.1488071
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This study investigates how mispricing and financing constraints affect firms' future capital investments. We find that when the financing constraints are high, overpriced (underpriced) firms invest more (less) subsequently under previous non-optimal investments. The overpriced (underpriced) firms with precautionary motives invest significantly less subsequently when they are financially constrained. The overall evidence suggests that share mispricing, financial constraints and precautionary motives play a critical role that enables investors to less effectively monitor managers' real decisions, thus limiting firms' capital investments.
引用
收藏
页码：5877 / 5892
页数：16
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