Stock prices and business investment

Is there a link between the stock market and business investment? Empirical evidence indicates that there is. A firm tends to invest more when its stock price increases, and it tends to invest less when the price falls. In “Stock Prices and Business Investment,” Yaron Leitner discusses existing research that explains this relationship. One question under consideration is whether the stock market actually improves investment decisions.

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Year of publication:	2007
Authors:	Leitner, Yaron
Published in:	Business Review. - Federal Reserve Bank of Philadelphia. - 2007, Q4
Publisher:	Federal Reserve Bank of Philadelphia
Subject:	Stock - Prices \| Investments

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004967418