Journal article
Value-Enhancing Capital Budgeting and Firm-Specific Stock Return Variation
The Journal of finance (New York), Vol.59(1), pp.65-105
02/2004
DOI: 10.1111/j.1540-6261.2004.00627.x
Abstract
We document a robust cross-sectional positive association across industries between a measure of the economic efficiency of corporate investment and the magnitude of firmspecific variation in stock returns. This finding is interesting for two reasons, neither of which is a priori obvious. First, it adds further support to the view that firm-specific return variation gauges the extent to which information about the firm is quickly and accurately reflected in share prices. Second, it can be interpreted as evidence that more informative stock prices facilitate more efficient corporate investment.
Details
- Title: Subtitle
- Value-Enhancing Capital Budgeting and Firm-Specific Stock Return Variation
- Creators
- Art DurnevRandall MorckBernard Yeung
- Resource Type
- Journal article
- Publication Details
- The Journal of finance (New York), Vol.59(1), pp.65-105
- Publisher
- Blackwell Publishers
- DOI
- 10.1111/j.1540-6261.2004.00627.x
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- Language
- English
- Date published
- 02/2004
- Academic Unit
- Finance
- Record Identifier
- 9984380449002771
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