Does the stock market make firms more productive?

Bennett, Benjamin; Stulz, René M.; Wang, Zexi

doi:10.1016/j.jfineco.2019.09.006

Cited by 136 publications

(34 citation statements)

References 90 publications

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“…Recent studies that use PIN as a measure of the probability of informed trading (Bennett et al. 2020 ; De Angelis et al. 2017 ; Friewald and Nagler 2019 ; Manconi et al.…”

Section: Research Design and Datamentioning

confidence: 99%

Bank loan information and information asymmetry in the stock market: evidence from China

Wang

Yang

2022

Financ Innov

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In this study, we use bank loan information to construct proxies for corporate transparency and examine whether these measures reflect information asymmetry in the stock market. Our analysis is based on a novel dataset of stock transactions and bank loans of all publicly listed firms on the Shenzhen Stock Exchange, covering January 2008 to June 2013. We find that firms with outstanding loans have a lower level of information asymmetry in the stock market, whereas firms with defaulted loans have a higher level of asymmetry. Further evidence demonstrates that the effect of loan default on information asymmetry in the stock market is more pronounced when these loans are borrowed from joint-equity commercial banks or multiple banks and when the default occurs under inactive market conditions. Our results remain robust to a series of endogeneity and sensitivity tests and provide suggestive evidence of a close connection between the credit loan and stock markets.

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“…Recent studies that use PIN as a measure of the probability of informed trading (Bennett et al. 2020 ; De Angelis et al. 2017 ; Friewald and Nagler 2019 ; Manconi et al.…”

Section: Research Design and Datamentioning

confidence: 99%

Bank loan information and information asymmetry in the stock market: evidence from China

Wang

Yang

2022

Financ Innov

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“…According to the signaling theory in (Noerirarwan et al, 2012) and (Bennet et al, 2019), research, expenditure on investments made by company management in the form of asset growth will be able to give a positive signal about the company's growth in the future. To increase market confidence which causes investors to not hesitate in allocating some funds to the company, this will have an impact on increasing the company's stock price.…”

Section: Theoretical Reviewmentioning

confidence: 99%

“…Signaling Theory is a theory that describes an action taken by a company's management that instructs investors about how management sees the company's prospects for the future (Bennet et al, 2019;Brigham et al, 1993). According to signaling theory, investment activity, and high-profit income can provide a positive signal about the growth of the company in the future, so that it can increase stock prices which are used as a reflection of company value (Achmad and Amanah, 2014;Amarudin et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Effect Of Investment Decision, Capital Structure, Profitability, And Company Size On Company Values

Suleman

2021

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This study wanted to examine the effect of investment decisions, capital structure, profitability, and company size on the value of the firm, by using samples from the property, real estate, and construction companies listed on the Indonesia stock exchange for the period 2014-2017. Hypothesis testing using the panel data method by using Eviews version 9. The results of the study showed that the investment decision, capital structure, and profitability did not have a significant effect on firm value. In contrast, the size of the company has a significant adverse effect on the value of the firm. From the results of the F test, investment decision, capital structure, profitability, company size in this study simultaneously influence the value of the firm.

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“…After China's economy enters a new stage of development, improving the total factor productivity is a critical concern that must be resolved without delay. Studies have explored the path of improving the total factor productivity of enterprises from government macro-control policies (Bartelsman et al, 2013;Alfaro and Chari, 2014), financial friction (Ziebarth, 2013;Midrigan and Xu, 2014;Lin et al, 2022), market information (Bennett et al, 2020), information and communication technology (Shao and Lin, 2016;Xie et al, 2020), and exchange rate fluctuations (Cao et al, 2022) and other aspects. Other studies have also explored the impact of environmental regulation on the total factor productivity of enterprises (Albrizio et al, 2017;Shen et al, 2019;Peng et al, 2021), however, most of them focus on command-and-control environmental policies and emission trading systems, and there is limited research on China's environmental protection tax.…”

Section: Introductionmentioning

confidence: 99%

Environmental protection tax and total factor productivity—Evidence from Chinese listed companies

Sun

Zhang

2023

Front. Environ. Sci.

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By improving its total factor productivity, China may attain higher quality and more sustainable economic growth. As a key market-based incentive for environmental regulation, does environmental protection tax increase total factor productivity and provide a win-win situation for both economic and environmental performance? It is a debate-worthy topic. Based on data of Chinese listed companies, this paper uses the triple difference method to analyze China’s environmental protection tax reform as a natural experiment. The results show that the environmental protection tax can significantly boost the firm’s total factor productivity by encouraging technological innovation and enhancing resource allocation. Based on analysis of heterogeneity, it appears that state-owned enterprises, larger corporations, and regions with more strict environmental enforcement are more responsive to environmental protection tax policies. This report provides critical empirical evidence for upgrading China’s tax framework to protect the environment.

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Does the stock market make firms more productive?

Cited by 136 publications

References 90 publications

Bank loan information and information asymmetry in the stock market: evidence from China

Bank loan information and information asymmetry in the stock market: evidence from China

Effect Of Investment Decision, Capital Structure, Profitability, And Company Size On Company Values

Environmental protection tax and total factor productivity—Evidence from Chinese listed companies

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