Do stock prices influence corporate decisions? Evidence from the technology bubble

被引:163
作者
Campello, Murillo [1 ,2 ]
Graham, John R. [2 ,3 ]
机构
[1] Cornell Univ, Ithaca, NY 14853 USA
[2] NBER, Cambridge, MA 02138 USA
[3] Duke Univ, Durham, NC 27706 USA
关键词
Stock markets; Corporate policies; Price bubbles; Financial constraints; INFORMATION-TECHNOLOGY; FINANCIAL CONSTRAINTS; CASH FLOW; INVESTMENT; MARKET; FUNDAMENTALS; ECONOMY; DEBT;
D O I
10.1016/j.jfineco.2012.08.002
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We study the capital investment, stock issuance, and cash savings behavior of non-tech manufacturers (old economy firms) during the 1990s technology bubble. Our empirical results show that high stock prices affect corporate policies because they relax financing constraints. During the tech bubble, constrained non-tech firms' investment responded strongly to "high stock prices" (specifically, the component of price that is not captured by fundamentals). They also issued stock in response to that overvaluation effect, saving part of the proceeds in their cash accounts. We find no such patterns for unconstrained non-tech firms, nor for tech firms. Our findings are not consistent with the notion that managers systematically issue overvalued stocks and invest in ways that transfer wealth from new to old shareholders. More broadly, they suggest that what appears to be overvaluation in one sector of the economy may have positive externalities for other sectors. (C) 2012 Elsevier B.V. All rights reserved.
引用
收藏
页码:89 / 110
页数:22
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