Comparing the investment behavior of public and private firms
By: John Asker, Joan Farre-Mensa, Alexander Ljungqvist
Contributors: Farre-Mensa, Joan; Ljungqvist,  Alexander; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17394; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17394.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We evaluate differences in investment behavior between stock market listed and privately held firms in the U.S.  using a rich new data source on private firms.  Listed firms invest less and are less responsive to changes in investment opportunities compared to observably similar, matched private firms, especially in industries in which stock prices are particularly sensitive to current earnings.  These differences do not appear to be due to unobserved differences between public and private firms, how we measure investment opportunities, lifecycle differences, or our matching criteria.  We suggest that the patterns we document are most consistent with theoretical models emphasizing the role of managerial myopia"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 11/29/2011.

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