Value-Enhancing Capital Budgeting and Firm-specific Stock Return Variation

By Artyom Durnev, Randall K. Morck, Bernard Yeung. 2004

894 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/d1d8970b5c3e13b9dc7a6850a15eddce2b0cf2f1

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Citations in the corpus

The Asset Growth Effect: Insights from International Equity Markets (2013, methodology): “In addition, Durnev et al. (2003) show that FERC is significantly higher for stocks with lower R2, another indication of stock price informativeness. The country-level FERC we use is the average of FERCs estimated for individual stocks in the country. Countries with greater FERCs are hence expected ”
R2 and Idiosyncratic Risk are not Interchangeable (2014, background): “Durnev et al. (2004) examine the association between the economic efﬁciency of investment and return synchronicity.”
Price Informativeness and Investment Sensitivity to Stock Price (2007, neutral): “Durnev, Morck, and Yeung (2004) showed that industries with higher firm-specific return variation allocate capital more efficiently in the sense that their marginal Tobin's Qs are closer to 1.”
Egalitarianism and International Investment (2011, neutral): “This table presents the results of marginal q regressions inspired by the work of Durnev, Morck, and Yeung (2004).”
IFRS reporting, firm-specific information flows, and institutional environments: international evidence (2012, neutral): “Studying the link between IFRS adoption and stock price synchronicity is interesting and important, particularly given mounting evidence in the recent finance literature that lower synchronicity is associated with the following: (i) more “functionally efficient” capital markets in Tobin’s (1982) sen”
The Real Effects of Disclosure Tone: Evidence from Restatements (2011, neutral): “(2007) but also invest more efficiently (Durnev et al., 2004).”
Is There a Dark Side to Exchange Traded Funds? An Information Perspective (2017, neutral): “Wurgler (2000), Durnev et al. (2003), Durnev et al. (2004), and Piotroski and Roulstone (2004) use this insight and provide evidence in support of it in a variety of settings.”
Independent Director Reputation Incentives and Stock Price Informativeness (2017, methodology): “addition to the the single-factor market model in Equation 1, we employ the residuals from the three-factor Fama and French (1993) model and find similar results.”
Information Environment and the Investment Decisions of Multinational Corporations (2013, background): “Prior studies argue that better information can improve investment because it allows shareholders to better monitor managerial actions (Bushman and Smith, 2001; Durnev et al., 2004; Chen et al., 2007).”
Family Control of Firms and Industries (2010, neutral): “interpretation of firm-specific relative stock return variation as a measure of corporate transparency, Durnev et al. (2004) find this variable to be associated with more efficient corporate investment in the United States.”