Topic:Proprietary Information and Investment-q sensitivity

Topic Proprietary Information and Investment-q sensitivity

Speaker：Tan Weiqiang（Associate Professor, Education University of Hong Kong）

Host：Zhan Chaoqun, Assistant Professor, Lingnan College

Time and Date：16:00-18:00, Nov.18, 2022

Venue: Wang Daohan Conference Room，Lingnan Hall

Language: English +Chinese

Tencent meeting: 632-277-752

Abstract:

Do managers learn from stock prices? In this study, we investigate the feedback effect of stock prices on real decisions by utilizing the staggered adoption of the inevitable disclosure doctrine (IDD), which exogenously decreases the stock price informativeness of firms headquartered in states that have adopted the IDD. We show that IDD adoption decreases investment-price sensitivity, resulting in lower investment efficiency. The negative effect of IDD adoption on investment efficiency is stronger when stock prices are likely to contain less private information. Our findings are consistent with the causal effect of stock prices on real decisions.

Profile of the speaker:

Dr. Tam Wai-keung graduated from Lingnan College of Sun Yat-Sen University in 2004. He received his PhD in Finance from the School of Management of Sun Yat-sen University in 2007. He is currently working at the Education University of Hong Kong as an associate professor in the Department of Social Sciences and Director of the MA Program in Personal Finance Education. His research interests focus on corporate finance, household finance and fintech, In the Journal of Financial Economics, Management Science, Journal of Corporate Finance, Journal of Business Ethics, and Journal of Banking and Finance and other top academic journals. He was awarded the 2018/2019 Academy Award for Outstanding Teaching Performance and the 2022 Academy Award for Research Achievement.