Which Firms Follow the Market? An Analysis of Corporate Investment Decisions

By Tor-Erik Bakke, Toni M. Whited. 2010

376 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/f530ac0520054a713aee72612bef0b99bacedf1f

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Citations in the corpus

Does stock price informativeness affect labor investment efficiency (2016, methodology): “19 Managers may respond to market mispricing of their stock when making investment decisions (Bakke and Whited, 2010).”
Cross-Listing, Investment Sensitivity to Stock Price, and the Learning Hypothesis (2012, positive): “A significant research effort has been made recently to identify this “managerial learning channel” (e.g., Durnev, Morck, and Yeung (2004), Luo (2005), Chen, Goldstein, and Jiang (2007), Bakke and Whited (2010), Frésard (2010), or Durnev (2010)).9 We contribute to this effort in two ways.”
Big Data as a Governance Mechanism (2019, positive): “I follow prior literature on managers’ learning from stock price’s aggregation of information (e.g., Dow and Gorton 1997; Dow and Rahi 2003; Chen et al. 2007; Bakke and Whited 2010).”
Information, Misallocation, and Aggregate Productivity (2016, background): “This is reminiscent of Bloom et al. (2013), who highlight the role of better management practices and/or manager skill in explaining crosscountry differences in performance. Finally, we show that differences in the volatility of the shocks to firm-level fundamentals also play a role in generating cr”
Ownership Structure , Limits to Arbitrage and Stock Returns: Evidence from Equity Lending Markets (2016, positive): “Bakke and Whited (2010), Chen et al. (2010), and Edmans et al. (2012) find that stock prices feed back into management decisions about investment and takeovers, and Goldstein and Guembel (2008) show that a speculator may manipulate prices by short selling with the objective of distorting investment.”
Learning from Peers' Stock Prices and Corporate Investment (2014, methodology): “13 For instance, Cespa and Foucault (2012) consider a model of trading with two assets A and B.”
Incentives for Information Production in Markets where Prices Affect Real Investment (2016, neutral): “From ( 4 ) it is clear that when δ ≤ 12, dX(α) dα > 0. Thus, the second term in (17) is negative.”
Corporate Social Responsibility and Access to Finance (2012, methodology): “…of interest is the “KZ index”, first advocated by Kaplan and Zingales (1997) and subsequently used extensively in the corporate finance literature (e.g. Lamont et al., 2001; Baker et al., 2003; Almeida et al., 2004; Bakke and Whited, 2010; Hong et al., 2011) as a measure of capital constraints.”
The Real Effects of Financial Markets (2012, positive): “Bakke and Whited (2010) demonstrate that the effect of price informativeness on the sensitivity of investment to Q continues to hold when correcting for measurement error in Q.”