Empirical Evidence on Capital Investment, Growth Options, and Security Returns

By Chris W. Anderson, Luis García‐Feijóo. 2006

357 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/ff2c750c749ebfd171b8a9a7181a7cba84f203bd

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Citations in the corpus

An Augmented q-Factor Model with Expected Growth* (2020, neutral): “…assets, Hirshleifer et al. (2004) dLno Change in long-term net operating assets, Fairfield, Whisenant, and Yohn (2003) Ig Investment growth, Xing (2008) 2Ig Two-year investment growth, Anderson and Garcia-Feijoo (2006) Nsi Net stock issues, Pontiff and Woodgate (2008) (continued) Table IV.”
The New Issues Puzzle: Testing the Investment-Based Explanation (2008, neutral): “Prior studies show that small-growth firms have higher investment-to-assets ratios than other firms (e.g., Anderson and Garcia-Feijóo, 2006; and Xing, 2006).”
Labor Hiring, Investment, and Stock Return Predictability in the Cross Section (2014, neutral): “We compute the spread portfolios for the FMB specifications that include the following return predictors: (1) only the investment rate, (2) only the hiring rate; and (3) both the investment and hiring rates.”
Real investment and risk dynamics (2011, background): “TitmanWei and Xie (2004) nd that rms that substantially increase capital investments subsequently achieve negative abnormal returns. They nd that this relation is strongest for rms with high cash ows and low debt ratios and argue that investors are slow to react to overinvestment by empire buil”
Can Growth Options Explain the Trend in Idiosyncratic Risk (2008, background): “The link is empirically confirmed in Anderson and Garcia-Feijóo (2006). Shin and Stultz (2000) provide empirical evidence relating Tobin’s Q to the variance of equity.”
Asset Growth and the Cross-Section of Stock Returns (2008, positive): “This finding is consistent with papers showing that firm growth should be fundamentally linked to lower expected returns (Berk, Green, and Naik (1999), Gomes, Kogan, and Zhang (2003), Carlson, Fisher, and Giammarino, (2004), Anderson and Garcia-Feijoo (2006), Fama and French (2006), and others).”
Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (2010, background): “More recent research studies whether firm growth is fairly priced in the cross-section by introducing and fine-tuning measures of growth (see, e.g., Richardson et al. 2006; Anderson and Garcia-Feijoo, 2006; and Cooper, Gulen, and Schill, 2008).”