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Cross-firm technological linkage and peer effects on investment efficiency

Author

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  • Zeng, Kailin
  • Kuang, Wen
  • Mills, Ebenezer Fiifi Emire Atta

Abstract

This study provides compelling and robust evidence of investment imitation arising from technological peer relationship. The documented peer effect operates through competition-based, outcome-oriented, learning-based, and market feedback channels. Mimicking investment strategies of technological peers positively influences the future performance of focal firms, especially in highly competitive markets and when these peers exhibit superior financial performance or favorable stock returns.

Suggested Citation

  • Zeng, Kailin & Kuang, Wen & Mills, Ebenezer Fiifi Emire Atta, 2025. "Cross-firm technological linkage and peer effects on investment efficiency," Economics Letters, Elsevier, vol. 248(C).
    • Handle: RePEc:eee:ecolet:v:248:y:2025:i:c:s0165176525000576
    DOI: 10.1016/j.econlet.2025.112220
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    References listed on IDEAS

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    More about this item

    Keywords

    Technological linkage; Peer effects; Investment efficiency;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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