Noisy share prices and the Q model of investment

By Stephen R. Bond, Jason G. Cummins. 2001

192 citations recorded by the source corpus.

Subfields: Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/82f1b419837e5686cceca7bc3a39eb3cfd4baf4b

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Citations in the corpus

Real Options, Irreversible Investment and Firm Uncertainty: New Evidence from U.S. Firms (2005, unknown): “See for example Abel and Eberly (2002), Bond and Cummins (2001) , Cooper and Ejarque (2001), Erickson and Whited (2000), and Gomes (2001).”
Financial constraints to innovation in the UK: evidence from CIS2 and CIS3 (2007, background): “Papers by Kaplan and Zingales (1997), Bond and Cummins (2001), Bond et al. (2004), and Cummins et al. (2006), argue the point with the current state of the argument reflecting the view of the latter papers that cash flow sensitivities are unable to reflect financial constraints in an unbiased…”
Credit channel, trade credit channel, and inventory investment: Evidence from a panel of UK firms (2006, background): “(1999); Bond and Cummins (2001); and Bond et al. (2002) estimated Q-models of investment augmented with cash flow, where firms’ investment opportunities are more accurately controlled for than in traditional models, and found that the coefficients associated with cash flow were poorly determined for”
Do Stock Price Bubbles Influence Corporate Investment (2005, unknown): “Erickson and Whited (1999) and Bond and Cummins (2000) estimate investment-Q equations and speculate that stock price bubbles are a likely source of measurement error in Tobin s Q.9 In the remainder of the paper, we begin by exploring the implications for rm behavior of a simple equilibrium model…”
The Influence of Governance on Investment: Evidence from a Hazard Model (2011, unknown): “9 In this case, among the unconstrained and high G-Index firms, we would expect 2 See, for example, Erickson and Whited (2000), Bond and Cummins (2001), Cooper and Ejarque (2001) and Cummins, Hassett, and Oliner (2006).”
FDI and Credit Constraints: Firm Level Evidence in China (2009, methodology): “the Q-methodology, such as severe measurement error and identification problems (see Kaplan and Zingales (2000), Erikson and Whited (2000), Bond and Cummins (2001) ).”
Global Capital Flows and Financing Constraints (2002, background): “In addition, numerous recent papers highlight other problems with the Q methodology, such as severe measurement error and identification problems (see Kaplan and Zingales, 2000; Erikson and Whited, 2000; Bond and Cummins, 2001).”
Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. (2008, background): “10 A further challenge to FHP (1988) came in fact with Bond and Cummins (2001) , Bond et al. (2004),”
Financial Constraints Risk (2006, unknown): “As shown in Erickson and Whited (2000), Bond and Cummins (2001), and Cooper and Ejarque (2001), this measurement-error problem renders the reducedform regression approach uninformative.”