CEO Overconfidence or Stock Mispricing and Growth? Reexamining the Effect of CEO Option Exercise Behavior on Corporate Investment

2010 ◽  
Author(s):  
Jie Cao ◽  
Rao Fu
Keyword(s):  
Corporate Investment ◽  
Exercise Behavior ◽  
Stock Mispricing

Stock mispricing and investment decisions: evidence from Pakistan

2018 ◽  
Vol 16 (4) ◽  
pp. 725-741
Author(s):  
Usman Muhammad ◽  
Sana Saleem ◽  
Anwar ul Haq Muhammad ◽  
Faiq Mahmood
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Capital Expenditures ◽  
Content Type ◽  
Financial Firms ◽  
Stock Mispricing ◽  
The Impact

Purpose This study aims to examine the impact of stock mispricing on corporate investment decisions by taking the sample of non-financial firms listed on the Pakistan Stock Exchange during the period of 2008-2014. Design/methodology/approach To measure the mispricing, this study decomposes the market-to-book ratio into mispricing and growth components and measures corporate investment by capital expenditures. Fixed and random effect panel regression models are used to estimate the results. Findings Results of the study show that firms issue overvalued equity to finance the capital expenditures. Consistent with other studies, the relationship between stock mispricing and investment is more prominent in the financially constrained firms. In addition, cash flow investment sensitivity is higher in financially unconstrained firms. Practical implications Nonetheless, the results give important implications to the Pakistan Stock Market on how the mispricing enhances the welfare by relaxing the financial constraints and allowing the managers to make investment in profitable projects that otherwise go non-funded. These findings have interesting implications for further research in the literature of finance and also help in economic policy-making. Originality/value This study finds the impact of stock mispricing on corporate investment decisions by considering the role of market timing in the context of Pakistan.

scholarly journals DOES STOCK MISPRICING AFFECT THE CORPORATE INVESTMENT DECISIONS? EVIDENCE FROM CATERING EFFECT

2018 ◽  
Vol 9 (1) ◽  
pp. 43
Author(s):  
Muhammad Usman ◽  
Sana Saleem ◽  
Faiq Mahmood ◽  
Humera Imran
Keyword(s):  
Stock Exchange ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Investment Horizon ◽  
Stock Repurchase ◽  
Investment Activity ◽  
Stock Mispricing ◽  
Short Horizon ◽  
The Impact ◽  
The Relationship

Current study finds out the effect of stock mispricing, through catering effect, on corporate investment decisions by taking the sample of firms listed on Pakistan Stock Exchange during the period of 2007-2014. This study uses the methodology of Rhodes-Kropf et al (2005) to measure the stock mispricing who used market to book decomposition methodology to find out different components of mispricing and relate it to corporate investment activity that is measured by capital expenditures. Stockholder investment horizon is measured by share turnover ratio. Panel regression methodology is used to determine the relationship between stock mispricing and corporate investment decisions. Results of the study show that Firms with short horizon investors have significantly higher mispricing sensitivity than the firms with long horizon shareholder. Both sides of mispricing affect the investment but the impact of overvaluation is more than undervaluation because the firms issue shareholder equity more than stock repurchase.

scholarly journals Bounded Rationality, Stock Mispricing, and Corporate Investment

2017 ◽  
Vol 21 (6) ◽  
pp. 1056-1064
Author(s):  
Zhaohui Zhu ◽  
Wensheng Huang ◽  
◽  
Keyword(s):  
Bounded Rationality ◽  
Investment Decision ◽  
Corporate Investment ◽  
Research Field ◽  
Intangible Asset ◽  
Investment Decision Making ◽  
Study Results ◽  
Chinese Listed Companies ◽  
Fixed Assets ◽  
Stock Mispricing

Although the effects of agents’ bounded rationality and stock mispricing on corporate investment is becoming a frontier research field in corporate finance, little research has been devoted to different channels of managers catering to agents’ bounded rationality and stock mispricing. With a sample of 2003–2010 Chinese listed companies, we investigate how firms cater to stock mispricing in their investment decision-making. The empirical study results support the view that managers do cater to investors’ perceived bias for investment in intangible assets and/or fixed assets and that firms’ financial constraints, market characteristics, and the myopia of investors are important factors in catering for such investment. Moreover, fixed asset investment may be a more important channel than intangible asset investment for managers when catering to stock mispricing.

Using Popular Mobile Devices in Voice Therapy

2013 ◽  
Vol 23 (3) ◽  
pp. 82-87 ◽  
Author(s):  
Eva van Leer
Keyword(s):  
Exercise Behavior ◽  
Voice Therapy ◽  
Pure Oxygen ◽  
Mobile Platforms ◽  
Self Monitoring ◽  
Web Based ◽  
Motivational Messages ◽  
Related Information ◽  
Health Related ◽  
Tailored Approach

Mobile tools are increasingly available to help individuals monitor their progress toward health behavior goals. Commonly known commercial products for health and fitness self-monitoring include wearable devices such as the Fitbit© and Nike + Pedometer© that work independently or in conjunction with mobile platforms (e.g., smartphones, media players) as well as web-based interfaces. These tools track and graph exercise behavior, provide motivational messages, offer health-related information, and allow users to share their accomplishments via social media. Approximately 2 million software programs or “apps” have been designed for mobile platforms (Pure Oxygen Mobile, 2013), many of which are health-related. The development of mobile health devices and applications is advancing so quickly that the Food and Drug Administration issued a Guidance statement with the purpose of defining mobile medical applications and describing a tailored approach to their regulation.

Eating and Exercise Behavior After Bariatric Surgery

2008 ◽  
Author(s):  
Martha V. C. Dunn ◽  
Kathi A. Borden
Keyword(s):  
Bariatric Surgery ◽  
Exercise Behavior

Prediction of exercise behavior in addictive persons: An application of the Theory of Planned Behavior

2007 ◽  
Author(s):  
Joanna Savidis ◽  
Haralambos Tsorbatzoudis
Keyword(s):  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Exercise Behavior
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