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
相关论文
共 50 条
  • [1] Financial constraints and investment decisions
    Saltari, E
    Travaglini, G
    SCOTTISH JOURNAL OF POLITICAL ECONOMY, 2001, 48 (03) : 330 - 344
  • [2] Do financial experts make better investment decisions?
    Bodnaruk, Andriy
    Simonov, Andrei
    JOURNAL OF FINANCIAL INTERMEDIATION, 2015, 24 (04) : 514 - 536
  • [3] Financial constraints and investment decisions of listed Indian manufacturing firms
    Sanjeev Kumar
    K. S. Ranjani
    Financial Innovation, 4
  • [4] Financial constraints and investment decisions of listed Indian manufacturing firms
    Kumar, Sanjeev
    Ranjani, K. S.
    FINANCIAL INNOVATION, 2018, 4 (01)
  • [5] Financial distress, short sale constraints, and mispricing
    Kim, Dongcheol
    Lee, Inro
    Na, Haejung
    PACIFIC-BASIN FINANCE JOURNAL, 2019, 53 : 94 - 111
  • [6] Stock mispricing and investment decisions: evidence from Pakistan
    Muhammad, Usman
    Saleem, Sana
    Muhammad, Anwar ul Haq
    Mahmood, Faiq
    JOURNAL OF FINANCIAL REPORTING AND ACCOUNTING, 2018, 16 (04) : 725 - 741
  • [7] Do liquidity constraints affect the investment decisions of California hospitals?
    Kim, Jounghyeon
    McCullough, Jeffrey S.
    Lee, Jinhyung
    ECONOMIC MODELLING, 2022, 113
  • [8] General manager overconfidence, financial constraints and investment decisions in listed company
    Du Rui
    Li Yanxi
    Gao Rui
    2008 4TH INTERNATIONAL CONFERENCE ON WIRELESS COMMUNICATIONS, NETWORKING AND MOBILE COMPUTING, VOLS 1-31, 2008, : 10131 - 10134
  • [9] Investment decisions with financial constraints. Evidence from Spanish firms
    Marabel Romo, Jacinto
    QUANTITATIVE FINANCE, 2014, 14 (06) : 1079 - 1095
  • [10] Firms' investment, indebtedness and financial constraints: Size does matter
    de Guevara, Juan Fernandez
    Maudos, Joaquin
    Salvador, Carlos
    FINANCE RESEARCH LETTERS, 2022, 46
12345