The equity-financing channel, the catering channel, and corporate investment: International evidence

• Main Authors: KUSNADI, Yuanto, WEI, K.C. John
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Equity-financing channel; Catering channel; Corporate investment; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1667; https://ink.library.smu.edu.sg/context/soa_research/article/2694/viewcontent/Investment2017.pdf
• Institution: Singapore Management University

We examine how stock market mispricing affectscorporate investment in an international setting. We find that investment ismore sensitive to stock prices for equity-dependent firms than for non-equity-dependentfirms in our international sample. Investment is also more sensitive to stockprices for fir...