期刊名称：Journal on Innovation and Sustainability. RISUS ISSN 2179-3565
印刷版ISSN：2179-3565
出版年度：2018
卷号：9
期号：1
页码：43-54
DOI：10.24212/2179-3565.2018v9i1p43-54
出版社：RISUS. Revista de Innovación y Sustentabilidad ISSN 2179-3565
摘要：Current study finds out the effect of stock mispricing, through catering effect, on corporate investment decisions by taking the sample of firms listed on Pakistan Stock Exchange during the period of 2007-2014. This study uses the methodology of Rhodes-Kropf et al (2005) to measure the stock mispricing who used market to book decomposition methodology to find out different components of mispricing and relate it to corporate investment activity that is measured by capital expenditures. Stockholder investment horizon is measured by share turnover ratio. Panel regression methodology is used to determine the relationship between stock mispricing and corporate investment decisions. Results of the study show that Firms with short horizon investors have significantly higher mispricing sensitivity than the firms with long horizon shareholder. Both sides of mispricing affect the investment but the impact of overvaluation is more than undervaluation because the firms issue shareholder equity more than stock repurchase.
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