Do Stock Price Bubbles Influence Corporate Investment

By Simon Gilchrist, C. Himmelberg, Gur Huberman. 2005

388 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/136587e69f0ad468845e2135dfa71680dc8ce963

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. David A. Hirshleifer
2. Siew Hong Teoh
3. Malcolm P. Baker
4. Danling Jiang
5. Hamdi Ben-Nasr
6. Abdullah A. Alshwer
7. Ming Dong
8. Lin Peng

In Economics and Econometrics

1. Siew Hong Teoh
2. David A. Hirshleifer
3. Danling Jiang
4. Hamdi Ben-Nasr
5. Ming Dong
6. Malcolm P. Baker
7. Abdullah A. Alshwer
8. Alok Kumar

In Finance

1. David A. Hirshleifer
2. Siew Hong Teoh
3. Malcolm P. Baker
4. Danling Jiang
5. Ming Dong
6. Hamdi Ben-Nasr
7. Abdullah A. Alshwer
8. Lin Peng

Citations in the corpus

• Which Firms Follow the Market? An Analysis of Corporate Investment Decisions (2010, neutral): “Other papers in this strand include Gilchrist, Himmelberg, and Huberman (2005) and Polk and Sapienza (2007), both of which include proxies for mispricing in an investment-q regression.”
• Firm Life Cycle, Corporate Risk Taking, and Investor Sentiment (2017, neutral): “…Recent work in finance has studied the impact of such sentiment on corporate actions, such as equity issues (Baker and Wurgler, 2002), dividend payouts (Baker and Wurgler, 2004; Li and Lie, 2006), investment (Gilchrist et al. 2005; Polk and Sapienza, 2009) and acquisitions (Dong et al. 2006).”
• The Real Effects of Short-Selling Constraints (2014, neutral): “Gilchrist, Himmelberg, and Huberman (2005) show that this overvaluation can cause overinvestment by artificially reducing the firm’s cost of capital.”
• Portfolio and Financing Adjustments for U.S. Banks: Some Empirical Evidence (2008, neutral): “Volatility in share valuations in the stock market induces volatility in real corporate investment and GDP as the evidence of Polk and Sapienza (2002), Panageas (2003), Gilchrist, Himmelberg, and Huberman (2005), Chirinko and Schaller (2007), and Kau, Linck, and Rubin (2004) indicates.”
• Does stock price informativeness affect labor investment efficiency (2016, background): “Analysts’ disagreement about forecasted earnings per share may lead to overvaluation of stock prices (e.g., Panageas, 2005; Gilchrist, Himmelberg, and Huberman, 2005), which lead managers to increase investment.20 Thirdly, we control for cumulative abnormal returns (CAR) dummies in Model 5 of Table…”
• Overvalued Equity and Financing Decisions (2012, positive): “The conditioning variables we hypothesize to affect the sensitivity of issuance to misvaluation debt issuance are the level of misvaluation itself, B/P , R&D, size, share turnover, and net insider selling.”
• The Real Effects of Financial Markets (2012, neutral): “A large literature, starting from the seminal papers by Grossman and Stiglitz (1980), Hellwig (1980), Admati (1985), Glosten and Milgrom (1985), and Kyle (1985), analyzes models in which informed speculators trade on their information about firm value and studies the extent to which their…”