Franklin

Stock Market Volatility and Corporate Investment [electronic resource] Hu, Zuliu.

Author/Creator:
Hu, Zuliu.
Publication:
Washington, D.C. : International Monetary Fund, 1995.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 95/102.
IMF Working Papers; Working Paper No. 95/102
Format/Description:
Government document
Book
1 online resource (26 p.)
Local subjects:
Capital formation.
Capital gains.
Capital market.
Capital market equilibrium.
Capital project.
Capital stock.
Cost of capital.
Equity capital.
Equity shares.
Financial economics.
Future value.
Net present value.
New york stock exchange.
Option pricing.
Partial derivatives.
Present value.
Stock exchange.
Stock index.
Stock market.
Stock market fluctuations.
Stock market participants.
Stock market price.
Stock market prices.
Stock market volatility.
Stock portfolio.
Stock price.
Stock prices.
Stock returns.
Valuation of capital.
United States.
Summary:
Despite concerns are often voiced on the so called “excess volatility” of the stock market, little is known about the implications of market volatility for the real economy. This paper examines whether the stock market volatility affects real fixed investment. The empirical evidence obtained from the US data shows that market volatility has independent effects on investment over and above that of stock returns. Volatility and its changes are negatively related to investment growth. To the extent volatility depresses fixed capital formation and hence future income growth, the results suggest the desirability of reducing stock market volatility.
Notes:
Description based on print version record.
Contributor:
Hu, Zuliu.
Other format:
Print Version:
ISBN:
1451852584:
9781451852585
ISSN:
1018-5941
Publisher Number:
10.5089/9781451852585.001
Access Restriction:
Restricted for use by site license.
Location Notes Your Loan Policy
Description Status Barcode Your Loan Policy