The Cross-Sectional Determinants Of Corporate Capital Expenditures: A Multinational Comparison
AbstractThis study predicts cross-sectional investment (asset-normalized capital expenditures) innovations within the United States, Canada, Great Britain, (mainland) Europe, and Japan. We find that lagged stock returns are the most important cross-sectional predictors of investment increases – except in mainland Europe. American firms tend to react more than Japanese firms but less than Canadian and British firms. However, the differences between Japanese firms and U.S. firms are small. In contrast, European firms appear to conduct their investment policy without much regard for their own lagged stock performance.
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Bibliographic InfoArticle provided by LMU Munich School of Management in its journal Schmalenbach Business Review.
Volume (Year): 52 (2000)
Issue (Month): 2 (April)
Other versions of this item:
- Ivo Welch, 1994. "The Cross-sectional Determinants of Corporate Capital Expenditures: A Multinational Comparison," Finance _002, University of California at Los Angeles.
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- Ayub, Mehar, 2000. "Funds Flow Analysis and Determinants of Fixed Assets," MPRA Paper 363, University Library of Munich, Germany, revised 2001.
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- James Dow & Gary Gorton, . "Stock Market Efficiency and Economic Efficiency: Is There a Connection?," Rodney L. White Center for Financial Research Working Papers 16-95, Wharton School Rodney L. White Center for Financial Research.
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