The Stock Market and Corporate Investment: A Test of Catering Theory

By Christopher Polk, Paola Sapienza. 2009

738 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/98fb133051c4a998c207e9e5ce351f247ed4ec94

How researchers see this paper

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

In Accounting

In Finance

Citations in the corpus

Investor Horizons and Corporate Policies (2013, positive): “As our fifth and sixth proxies, we use future excess returns (see Baker, Stein, and Wurgler (2003), Polk and Sapienza (2009)) and mutual fund flows (see Edmans, Goldstein, and Jiang (2012), Khan, Kogan, and Serafeim (2012)).”
The Real Consequences of Market Segmentation (2012, background): “5 See, for example, Baker, Stein, and Wurgler (2003) and Polk and Sapienza (2009).”
Overpriced Shares, Ill-Advised Acquisitions, and Goodwill Impairment (2011, positive): “Some use the overpriced shares to finance organic (internal) growth, as shown by Polk and Sapienza (2009), while some may just do nothing with the overpriced shares.”
Capital Market-Driven Corporate Finance (2009, background): “The traditional interpretation from Tobin (1969) and von Furstenberg (1977) is that market prices reflect the present value of future investment opportunities.”
Overvalued Equity and Financing Decisions (2012, positive): “Furthermore, overoptimistic market valuations of investment opportunities can encourage firms to take actions to confirm such expectations (Polk and Sapienza (2009)).”
Country-Specific Sentiment and Security Prices (2011, neutral): “The evidence also speaks to the growing literature on the “real” consequences of investor sentiment and the examination of how market valuation affects firm level resource allocation (e.g., Baker, Stein, and Wurgler, 2003; and Polk and Sapienza, 2009).”
Financing Frictions and the Substitution between Internal and External Funds (2010, neutral): “Leary and Roberts (2005), for example, find that firms that have high cash flows or high cash balances are less likely to issue (and are more likely to retire) both debt and equity.”
Endogeneity in CEO power: A survey and experiment (2016, neutral): “…examples that used this approach are Cooper, Gulen, and Ovtchinikov (2010) on the relationship between political contribution and stock return, Polk and Sapienza (2009) on investment and future firm performance, Bettis et al. (2009) on managerial stock vesting and future performance, and Ang…”
Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns (2016, background): “…extract the cash- 1There is a substantial literature on the accrual anomaly that includes Fama and French (2006), Hirshleifer, Hou, and Teoh (2009), Polk and Sapienza (2009), Hirshleifer and Jiang (2010), Li and Zhang (2010), Hirshleifer, Teoh, and Yu (2011), Lewellen (2011), Stambaugh, Yu, and…”
The Real Effects of Mandatory Quarterly Reporting (2017, background): “Stein (1989) argues that management tends to act myopically in the best interest to maximize a firm’s stock price.”
Digesting Anomalies: An Investment Approach (2015, background): “3 See Fairfield, Whisenant, and Yohn (2003); Titman, Wei, and Xie (2004); Cooper, Gulen, and Schill (2008); Xing (2008); and Polk and Sapienza (2009) for the investment effect, and Ball and Brown (1968); Bernard and Thomas (1990); Chan, Jegadeesh, and Lakonishok (1996); Haugen and Baker (1996);…”