Capital Investments and Stock Returns

By Sheridan Titman, K. Wei, Feixue Xie. Journal of Financial and Quantitative Analysis, 2003

1,435 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/439fda58cbe8108bb41026b40183aa2956c51713

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Citations in the corpus

A five-factor asset pricing model (2013, background): “The evidence of Novy-Marx (2013), Titman, Wei, and Xie (2004), and others says that (4) is an incomplete model for expected returns because its three factors miss much of the variation in average returns related to profitability and investment.”
The Role of Anchoring Bias in the Equity Market: Evidence from Analysts’ Earnings Forecasts and Stock Returns (2012, neutral): “Titman, Wei, and Xie (2004) apply this approach to study whether the negative relation between capital investment and subsequent stock returns is attributed to mispricing.”
Psychology-based Models of Asset Prices and Trading Volume (2018, background): “, 2008); investment (Titman et al., 2004); and accruals (Sloan, 1996).”
Overvalued Equity and Financing Decisions (2012, neutral): “…are associated with greater 7 capital expenditures and R&D (Gilchrist, Himmelberg, and Huberman (2005) and Polk and Sapienza (2009); see also Titman, Wei, and Xie (2004)), and that the effects of stock market valuations (efficient or otherwise) on investment are greater for more financially…”
The History of the Cross Section of Stock Returns (2016, neutral): “Book value of equity is potentially problematic because (8)See, for example, Vuolteenaho (2002), Cohen, Polk, and Vuolteenaho (2003), and Nagel (2005).”
Decoupling CEO Wealth and Firm Performance: The Case of Acquiring CEOs (2007, positive): “We follow Titman et al. (2004) to construct a measure of abnormal capital investment, which is the difference between the current period capital expenditure (Compustat data item 128) scaled by sales and last three-year average capital expenditures.”
Does Enhanced Disclosure Really Reduce Agency Costs? Evidence from the Diversion of Corporate Resources (2012, result): “Our additional analyses are inspired by recent research (Titman et al. 2004; Moeller et al. 2005) that major internal investment and external investment via acquisitions are among the most significant resource allocations that can cause large wealth destruction for shareholders.”
The Mystery of Zero-Leverage Firms (2013, neutral): “To study the impact of future invest - ment , we follow Titman , Wei , and Xie ( 2004 ) and define 0 20 40 60 80 100 0 2 4 6 8 10 Quasi−market leverage Percentage of book assets Interest expense Dividend Stock repurchase Total payout Fig .”