Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
958387 | Journal of Empirical Finance | 2014 | 10 Pages |
Abstract
Market effects on corporate investment are well documented. Low disagreement implies high investment, but we know little about what high disagreement implies, other than the implied flip side (low investment). This paper adds to this literature in several ways. A new dimension of corporate behavior that is related to disagreement is documented. Higher disagreement precedes a lower cost structure. Empirical tests reveal that the results are not driven by forced production efficiency due to financial constraints.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jason Smith,