Stock price informativeness and corporate investment efficiency:Evidence from Chinese manufacturing listed companies between 2001 and 2005

Zhi-zhu, Yuan; Ju, Xiaofeng

doi:10.1109/icmse.2008.4669089

Cited by 3 publications

(2 citation statements)

References 23 publications

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“…The amount of private information ingrained in the stock prices affects investment-Q sensitivity (Chen et al, 2007). Stock price informativeness, according to Zhi-Zhu and Xiao-Feng (2008), ''can reduce the susceptibility of overinvestment to free cash flows and underinvestment to financing constraints.' 'Loureiro and Taboada (2015) investigated that the impact of information chaos on insiders' capacity to learn from outsiders.…”

Section: Introductionmentioning

confidence: 99%

Does Private Information Always Hurt Retail Investors? The Impact of Private Information on Cost of Equity: Moderating Role of Investment Adjustment

Saleem,

Usman,

Akhtar

2023

Sage Open

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Private information puts naïve traders at a significant trading disadvantage and at the same it provide crucial signals managers for investment adjustment. These two forces have opposing effects on the cost of equity, and the overall effect is determined by which force dominates. For clinching this effect, this study finds out how investment adjustment plays the moderating role between private information and COE. The study employs data of non-financial firms listed on PSX from 2008 to 2019. Further, the study employs a two-step system GMM dynamic panel estimator to analyze the data. The findings of the study show that companies with a low investment adjustment flexibility known as “value firms” do not gain as much from information incorporated in market prices compared to firms having high flexibility in adjusting investment “growth firms.” This study adds to the literature by revealing unique insight on the effect of investment adjustment in reducing the influence of private information on COE and corporate investment as well. JEL classification: D82, G14, G410.

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Section: Introductionmentioning

confidence: 99%

Does Private Information Always Hurt Retail Investors? The Impact of Private Information on Cost of Equity: Moderating Role of Investment Adjustment

Saleem,

Usman,

Akhtar

2023

Sage Open

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“…4] Yuan Zhizhong and Zhu only chose 2006 and 2007 in Shanghai and Shenzhen A shares listed 29 Real Estate Company as a sample of corporate performance, empirical study found that there was a significant positive correlation of real estate listed company executives shareholding and corporate performance [5]. …”

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confidence: 99%

Study on the Problems of Management Shareholding and the Mixed Ownership

Gao¹

2017

IJEFM

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In recent years, managerial ownership has begun to be used as an incentive mechanism in China. Managerial ownership is one of the ways to realize the mixed ownership reform of state owned enterprises. In this paper, the impact of executive stock ownership on corporate performance of China's state-owned listed companies that mixed ownership has been achieved is analyzed. The conclusions are as follows: the state-owned listed companies management ownership and corporate performance has a positive correlation. The financial performance of the company increases with the proportion of management shareholding, ownership concentration and equity balance. There is a significant negative correlation between the proportion of independent directors and the rate of return on net assets, which shows that the independent directors of state-owned enterprises in China have not played its due role in the governance of state-owned enterprises.

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International Journal of Economics, Finance and Management Sciences

Chiappini¹,

Riccetti²

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Stock price informativeness and corporate investment efficiency:Evidence from Chinese manufacturing listed companies between 2001 and 2005

Cited by 3 publications

References 23 publications

Does Private Information Always Hurt Retail Investors? The Impact of Private Information on Cost of Equity: Moderating Role of Investment Adjustment

Does Private Information Always Hurt Retail Investors? The Impact of Private Information on Cost of Equity: Moderating Role of Investment Adjustment

Study on the Problems of Management Shareholding and the Mixed Ownership

International Journal of Economics, Finance and Management Sciences

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