We show that the introduction of a new asset affects the prices of previously existing assets in a market. Using data from 254 IPOs in emerging markets, we find that stocks in industries that covary highly with the industry of the IPO experience a larger decline in prices relative to other...

This paper examines the relationship between stock market prices and investment across a number of countries and provides useful evidence for interpreting this link. We assemble a novel dataset consisting of industry panel data for the corporate sector and the entire economy (i.e. listed and...