Do stock price bubbles influence corporate investment?

Dispersion in investor beliefs and short-selling constraints can lead to stock market bubbles. This paper argues that firms, unlike investors, can exploit such bubbles by issuing new shares at inflated prices. This lowers the cost of capital and increases real investment. Perhaps surprisingly, large...

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Veröffentlicht in:	Journal of monetary economics 2005-05, Vol.52 (4), p.805-827
Hauptverfasser:	Gilchrist, Simon, Himmelberg, Charles P., Huberman, Gur
Format:	Artikel
Sprache:	eng
Schlagworte:	Beliefs Capital costs Capital market Economic behaviour Financial economics Forecasts Heterogeneous beliefs Investment Investors Mathematical models Monetary economics Short sales constraints Stock exchange Stock prices
Online-Zugang:	Volltext
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