When does the market matter? Stock prices and the investment of equity-dependent firms

Quarterly Journal of Economics

Volumn 118, Issue 3, 2003, Pages 969-1005

  Baker, Malcolm ^b   Stein, Jeremy C ^b   Wurgler, Jeffrey ^a  

^a NEW YORK UNIVERSITY   (United States)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0041360394     PISSN: 00335533     EISSN: None     Source Type: Journal    
DOI: 10.1162/00335530360698478     Document Type: Review

References (40)

1. Alti, Aydogan, "How Sensitive Is Investment to Cash Flow When Financing Is Friotionless?" Journal of Finance, LVII (2003), 707-722.
2. Baker, Malcolm, Jeremy Stein, and Jeffrey Wurgler, "When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms," NBER Working Paper No. 8750, 2002.
3. Baker, Malcolm, and Jeffrey Wurgler, "The Equity Share in New Issues and Aggregate Stock Returns," Journal of Finance, LV (2000), 2219-2257.
4. _, 'Market Timing and Capital Structure," Journal of Finance, LVII (2002), 1-32.
5. Barro, Robert J., "The Stock Market and Investment," Review of Financial Studies, III (1990), 115-132.
6. Bayless, Mark, and Susan Chaplinsky, "Is there a Window of Opportunity for Seasoned Equity Issuance?" Journal of Finance, LI (1996), 253-278.
7. Blanchard, Olivier, Chanyong Rhee, and Lawrence Summers, "The Stock Market, Profit, and Investment," Quarterly Journal of Economics, CVIII (1993), 115-136.
8. Bosworth, Barry, "The Stock Market and the Economy," Brookings Papers on Economic Activity (1:1975), 257-290.
9. Chirinko, Robert S., and Huntley Schaller, "Business Fixed Investment and 'Bubbles': The Japanese Case," American Economic Review, XCI (2001), 663-680.
10. Choe, Hyuk, Ronald W. Masulis, and Vikram Nanda, "Common Stock Offerings across the Business Cycle: Theory and Evidence," Journal of Empirical Finance, I (1993), 3-31.
11. Diamond, Douglas W., "Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt," Journal of Political Economy, XCIX (1991), 689-721.
12. Erickson, Timothy, and Toni M. Whited, "Measurement Error and the Relationship between Investment and Q," Journal of Political Economy, CVIII (2000), 1027-1057.
13. Fama, Eugene F., and Kenneth R. French, "Industry Costs of Equity," Journal of Financial Economics, XLIII (1997), 153-193.
14. Fama, Eugene F., and James D. MacBeth, "Risk, Return and Equilibrium: Empirical Tests," Journal of Political Economy, LXXXI (1973), 607-636.
15. Fazzari, Steven M., R. Glenn Hubbard, and Bruce C. Petersen, "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity (1:1988), 141-195.
16. Fazzari, Steven M., R. Glenn Hubbard, and Bruce C. Petersen, "Investment-Cash Flow Sensitivities Are Useful: A Comment on Kaplan and Zingales," Quarterly Journal of Economics, CXV (2000), 707-712.
17. Fischer, Stanley, and Robert C. Merton, "Macroeconomics and Finance: The Role of the Stock Market," Carnegie-Rochester Conference Series on Public Policy, XXI (1984), 57-108.
18. Ikenberry, David, Josef Lakonishok, and Theo Vermaelen, "Market Underreaction to Open Market Share Repurchases," Journal of Financial Economics, XXXIX (1995), 181-208.
19. Jenter, Dirk, "Market Timing and Managerial Portfolio Decisions," Harvard University, working paper, 2001.
20. Kaplan, Steven N., and Luigi Zingales, "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?" Quarterly Journal of Economics, CXII (1997), 169-215.
21. Kaplan, Steven N., and Luigi Zingales, "Investment-Cash Flow Sensitivities Are Not Valid Measures of Financing Constraints," Quarterly Journal of Economics, CXV (2000), 695-705.
22. Keynes, John Maynard, The General Theory of Employment, Interest, and Money (London: Macmillan, 1936).
23. Lamont, Owen, Christopher Polk, and Jesus Saa-Requejo, "Financial Constraints and Stock Returns", Review of Financial Studies, XIV (2001), 529-554.
24. Loughran, Tim, and Jay Ritter, "The New Issues Puzzle," Journal of Finance, L (1995), 23-51.
25. Lucas, Deborah, and Robert McDonald, "Equity Issues and Stock Price Dynamics," Journal of Finance, XLV (1990), 1019-1043.
26. Morck, Randall, Andrei Shleifer, and Robert Vishny, "The Stock Market and Investment: Is the Market a Sideshow?" Brookings Papers on Economic Activity (2:1990), 157-215.
27. Myers, Stewart C., and Nicholas S. Majluf, "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have," Journal of Financial Economics, XIII (1984), 187-221.
28. Polk, Christopher, and Paola Sapienza, "The Real Effects of Investor Sentiment," Northwestern University, working paper, 2002.
29. Poterba, James, "Comments on Fazzari, Hubbard, and Petersen," Brookings Papers on Economic Activity (1:1988), 200-204.
30. Rajan, Raghuram G., Henri Servaes, and Luigi Zingales, "The Cost of Diversity: The Diversification Discount and Inefficient Investment," Journal of Finance, LV (2000), 35-80.
31. Rajan, Raghuram G., and Luigi Zingales, "Financial Dependence and Growth," American Economic Review, LXXXVIII (1998), 559-586.
32. Ritter, Jay, "The Long-Run Performance of Initial Public Offerings," Journal of Finance, XLII (1991), 365-394.
33. Scharfstein, David S., "The Dark Side of Internal Capital Markets II: Evidence from Diversified Conglomerates," NBER Working Paper No. 6352, 1998.
34. Shleifer, Andrei, and Robert Vishny, "Stock Market Driven Acquisitions," Journal of Financial Economics, forthcoming.
35. Speiss, D. Katherine, and John Affieck-Graves, "Underperformance in Long-Run Stock Returns Following Seasoned Equity Offerings," Journal of Financial Economics, XXXVIII (1995), 243-267.
36. Stein, Jeremy C., "Rational Capital Budgeting in an Irrational World," Journal of Business, LXIX (1996), 429-455.
37. Titman, Sheridan, K. C. John Wei, and Feixue Xie, "Capital Investments and Stock Returns," University of Texas, working paper, 2001.
38. Tobin, James, "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, I (1969), 15-29.
39. von Furstenberg, George M., "Corporate investment: Does Market Valuation Matter in the Aggregate?" Brookings Papers on Economic Activity, (2:1977), 347-397.
40. Vuolteenaho, Tuomo, "What Drives Firm-Level Stock Returns?" Journal of Finance, LVII (2002), 233-264.