Price Informativeness and Investment Sensitivity to Stock Price

By Qi Chen, Itay Goldstein, Wei Jiang. 2007

744 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/73196d92fbcf8a86825adc85814767f5a3939a63

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Citations in the corpus

The spillover effects of MD&A disclosures for real investment: The role of industry competition (2019, neutral): “…decisions: rivals' investment (De Bondt, 1996), the company's and its rivals' stock price informativeness and their analyst earnings forecasts, the company's stock returns during the prior 12 months, and its abnormal returns at its rivals' prior-year earnings announcements (Chen et al., 2007).”
Does PIN affect equity prices around the world (2014, neutral): “…to public and private news surprises (Vega, 2006), the information effect of IPO underpricing (Ellul and Pagano, 2006), the corporate investment sensitivity to stock prices (Chen, Goldstein, and Jiang, 2007), the impact of Regulation FD on information asymmetry (Duarte et al., 2008), among others.”
Policy uncertainty, investment, and the cost of capital (2018, neutral): “Although managers are better informed than outsiders, they receive information about their company from the company’s stock price that would otherwise not be available to them, and they use this information in their investment decisions (Dow and Gorton, 1997; Chen et al., 2007; Bakke and Whited, 201”
The Effect of Trade Secrets Law on Stock Price Synchronicity: Evidence from the Inevitable Disclosure Doctrine (2020, positive): “Lower stock price synchronicity reflects more firm-specific information incorporated in stock prices, which enables investors to make better financial decisions and to allocate capital more efficiently (Wurgler 2000; Durnev et al. 2003; Chen, Goldstein, and Jiang 2006).”
Do Stock Prices Influence Corporate Decisions? Evidence from the Technology Bubble (2013, positive): “Proxies for price informativeness have also been found to a¤ect investment (Chen et al. (2006)).”
Learning from Peers' Stock Prices and Corporate Investment (2014, methodology): “As found in many other studies (e.g., Chen, Goldstein, and Jiang (2007)), there is a positive and signi cant relation between a rm s own Q and its investment in our sample.”
Board Expertise: Do Directors from Related Industries Help Bridge the Information Gap? (2014, positive): “We follow Chen, Goldstein, and Jiang (2007) to estimate stock price informativeness (Price_Info); its mean (median) value is 0.725 (0.749).”
Product Market Competition, Insider Trading, and Stock Market Efficiency (2010, neutral): “In particular, one would suspect the impact of market power to be stronger among firms with more severe information asymmetries, such as firms with fewer analysts, more individual shareholders, large blockholders, more R&D expenditures, smaller firms and firms listed on the Nasdaq.(30) For example, ”
Evaluating the Information in the Federal Reserve Stress Tests (2015, background): “18 Chen et al. (2010) find empirical evidence consistent with the importance of ownership complementarities among equity mutual funds.”
Social Capital, Investments and External Financing (2015, neutral): “These numbers are similar to those reported by prior research (e.g., Chen et al. 2006, Mclean et al. 2012).”