Stock Market Mispricing, Executive Compensation and Corporate Investment: Evidence from Australia

被引：11
|
作者：
Li, Hui [1 ]
Henry, Darren [1 ]
Chou, Hsin-I [1 ]
机构：
[1] La Trobe Univ, Fac Law & Management, Sch Econ & Finance, Melbourne, Vic 2086, Australia
来源：
JOURNAL OF BEHAVIORAL FINANCE | 2011年 / 12卷 / 03期
关键词：
Investor sentiment; Stock mispricing; Corporate investment; Executive compensation; Behavioral finance; SENTIMENT;
D O I：
10.1080/15427560.2011.600842
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper empirically investigates the relation between stock mispricing, the compensation of executives and directors, and corporate investment using Australian data. We find no significant relation between investment level and stock mispricing as measured by the nonfundamental component in the firm's Q ratio. We also document a significant positive relation between the magnitude of equity-based compensation, measured as the percentage of the market value of a firm's equity, and the investment level. The results suggest that managers make investment decisions that do not cater to stock market mispricing but rather that concern their equity-based compensation.
引用
收藏
页码：131 / 140
页数：10
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