Investment Behavior, Observable Expectations and Internal Funds

Article, Preprint OPEN
Cummins, Jason; Hassett, Kevin; Oliner, Stephen;
  • Journal: American Economic Review,volume 96,issue 3 June,pages796-810
  • Related identifiers: doi: 10.1257/aer.96.3.796
  • Subject: Semiparametric methods, partially-linear model, investment, cash flow, Tobin's Q | Investments ; Liquidity (Economics) ; Econometric models
    • jel: jel:C23 | jel:C14 | jel:E22 | jel:D92

We use earnings forecasts from securities analysts to construct more accurate measures of the fundamentals that affect the expected returns to investment. We find that investment responds significantly -- in both economic and statistical terms -- to our new measures of ... View more
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    19 references, page 1 of 2

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