AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE
This dissertation investigates the impact of the stock market mispricing on corporate investment decisions for the UK stock market over the period from 1994 to 2012. In order to analyze this effect thoroughly, the market to book ratio is decomposed into firm level mispricing, industry level misprici...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2014
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| Online Access: | https://eprints.nottingham.ac.uk/27211/ |
| _version_ | 1848793327943548928 |
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| author | Mei, Chen |
| author_facet | Mei, Chen |
| author_sort | Mei, Chen |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This dissertation investigates the impact of the stock market mispricing on corporate investment decisions for the UK stock market over the period from 1994 to 2012. In order to analyze this effect thoroughly, the market to book ratio is decomposed into firm level mispricing, industry level mispricing and growth opportunities components. The results of the dissertation show that only the growth component determines the investment decisions while holding the financial slack factors constant. Inconsistent with my predictions, neither the firm level mispricing nor the industry level mispricing has minimal power in explaining the changes in corporate investments. This might be due to the unique characteristics of chosen stock market and period. |
| first_indexed | 2025-11-14T18:58:33Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-27211 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:58:33Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-272112018-01-06T02:24:56Z https://eprints.nottingham.ac.uk/27211/ AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE Mei, Chen This dissertation investigates the impact of the stock market mispricing on corporate investment decisions for the UK stock market over the period from 1994 to 2012. In order to analyze this effect thoroughly, the market to book ratio is decomposed into firm level mispricing, industry level mispricing and growth opportunities components. The results of the dissertation show that only the growth component determines the investment decisions while holding the financial slack factors constant. Inconsistent with my predictions, neither the firm level mispricing nor the industry level mispricing has minimal power in explaining the changes in corporate investments. This might be due to the unique characteristics of chosen stock market and period. 2014-09-11 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27211/1/final_DT2.pdf Mei, Chen (2014) AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Mei, Chen AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title | AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title_full | AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title_fullStr | AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title_full_unstemmed | AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title_short | AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN STOCK MISPRICING AND INVESTMENTS: EVIDENCE FROM LONDON STOCK EXCHANGE |
| title_sort | empirical study of the relationship between stock mispricing and investments: evidence from london stock exchange |
| url | https://eprints.nottingham.ac.uk/27211/ |