The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Yue Zheng - One of the best experts on this subject based on the ideXlab platform.
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an empirical analysis of analysts Capital Expenditure forecasts evidence from corporate investment efficiency
Contemporary Accounting Research, 2020Co-Authors: Jin Kyung Choi, Rebecca N Hann, Musa Subasi, Yue ZhengAbstract:We examine whether the information conveyed in a relatively new analyst research output—Capital Expenditure (capex) forecasts—affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities—positive‐growth signals are more effective in reducing underinvestment, while negative‐growth signals are more effective in reducing overinvestment. Cross‐sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts' capex forecasts convey useful information about firms' growth opportunities to managers and investors, which can facilitate efficient investment. Une analyse empirique des previsions des analystes quant aux de depenses en immobilisations : donnees relatives a l'efficience des investissements des entreprises Les auteurs se demandent si les renseignements que livrent les resultats de recherches relativement recentes, concernant les previsions de depenses en immobilisations des analystes, influent sur l'efficience des investissements des entreprises. Ils constatent que les investissements des societes a l'egard desquels les analystes formulent des previsions de depenses en immobilisations affichent une efficience superieure, superiorite qui croit avec la competence ou la connaissance du secteur d'activite que possedent les analystes formulant les previsions. En outre, l'incidence des previsions de depenses en immobilisations sur l'efficience des investissements varie selon les indicateurs communiques quant aux possibilites de croissance future — les indicateurs de croissance etant davantage susceptibles de reduire le sous‐investissement lorsqu'ils sont positifs et le surinvestissement lorsqu'ils sont negatifs. Les resultats d'analyses transversales semblent indiquer que cette incidence se manifeste, a tout le moins en partie, tant par la voie du financement que par celle du suivi. Dans leur ensemble, les resultats de l'etude laissent croire que les previsions des analystes quant aux depenses en immobilisations livrent aux gestionnaires et aux investisseurs, au sujet des possibilites de croissance des societes, de l'information qui est utile et susceptible de favoriser l'efficience des investissements.
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an empirical analysis of analysts Capital Expenditure forecasts evidence from corporate investment efficiency
Social Science Research Network, 2018Co-Authors: Jin Kyung Choi, Rebecca N Hann, Musa Subasi, Yue ZhengAbstract:We examine whether the information conveyed in a relatively new analyst research output — Capital Expenditure (capex) forecasts — affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities — positive-growth signals are more effective in reducing underinvestment, while negative-growth signals are more effective in reducing overinvestment. Cross-sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts’ capex forecasts convey useful information about firms’ growth opportunities to managers and investors, which can facilitate efficient investment.
Zhongwen Fan - One of the best experts on this subject based on the ideXlab platform.
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the role of Capital Expenditure forecasts in debt contracting
Social Science Research Network, 2018Co-Authors: Ashiq Ali, Zhongwen FanAbstract:This study examines whether firms’ Capital Expenditure forecasts can act as a commitment to not engage in expropriation of lenders through opportunistic investment activities. We find that firms with higher leverage and lower credit quality are more likely to issue Capital Expenditure forecasts. Furthermore, for firms that issue Capital Expenditure forecasts, investment efficiency is greater and loan spreads are lower, and these associations are stronger when the forecasts are more credible. We do not find similar results for earnings forecasts. These results suggest that Capital Expenditure forecasts can be a commitment mechanism to reduce contracting costs with creditors.
Jin Kyung Choi - One of the best experts on this subject based on the ideXlab platform.
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an empirical analysis of analysts Capital Expenditure forecasts evidence from corporate investment efficiency
Contemporary Accounting Research, 2020Co-Authors: Jin Kyung Choi, Rebecca N Hann, Musa Subasi, Yue ZhengAbstract:We examine whether the information conveyed in a relatively new analyst research output—Capital Expenditure (capex) forecasts—affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities—positive‐growth signals are more effective in reducing underinvestment, while negative‐growth signals are more effective in reducing overinvestment. Cross‐sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts' capex forecasts convey useful information about firms' growth opportunities to managers and investors, which can facilitate efficient investment. Une analyse empirique des previsions des analystes quant aux de depenses en immobilisations : donnees relatives a l'efficience des investissements des entreprises Les auteurs se demandent si les renseignements que livrent les resultats de recherches relativement recentes, concernant les previsions de depenses en immobilisations des analystes, influent sur l'efficience des investissements des entreprises. Ils constatent que les investissements des societes a l'egard desquels les analystes formulent des previsions de depenses en immobilisations affichent une efficience superieure, superiorite qui croit avec la competence ou la connaissance du secteur d'activite que possedent les analystes formulant les previsions. En outre, l'incidence des previsions de depenses en immobilisations sur l'efficience des investissements varie selon les indicateurs communiques quant aux possibilites de croissance future — les indicateurs de croissance etant davantage susceptibles de reduire le sous‐investissement lorsqu'ils sont positifs et le surinvestissement lorsqu'ils sont negatifs. Les resultats d'analyses transversales semblent indiquer que cette incidence se manifeste, a tout le moins en partie, tant par la voie du financement que par celle du suivi. Dans leur ensemble, les resultats de l'etude laissent croire que les previsions des analystes quant aux depenses en immobilisations livrent aux gestionnaires et aux investisseurs, au sujet des possibilites de croissance des societes, de l'information qui est utile et susceptible de favoriser l'efficience des investissements.
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an empirical analysis of analysts Capital Expenditure forecasts evidence from corporate investment efficiency
Social Science Research Network, 2018Co-Authors: Jin Kyung Choi, Rebecca N Hann, Musa Subasi, Yue ZhengAbstract:We examine whether the information conveyed in a relatively new analyst research output — Capital Expenditure (capex) forecasts — affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities — positive-growth signals are more effective in reducing underinvestment, while negative-growth signals are more effective in reducing overinvestment. Cross-sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts’ capex forecasts convey useful information about firms’ growth opportunities to managers and investors, which can facilitate efficient investment.
Guy M Yamashiro - One of the best experts on this subject based on the ideXlab platform.
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the efficiency of internal Capital markets evidence from the annual Capital Expenditure survey
The Quarterly Review of Economics and Finance, 2011Co-Authors: Sumit Agarwal, Iming Chiu, Victor Souphom, Guy M YamashiroAbstract:Does firm diversity result in an efficient or inefficient allocation of Capital? Are diversified firms “value creating” or “value destroying”? We apply a panel data model to examine the relationship between firm diversity and firm value using both COMPUSTAT and the Annual Capital Expenditure Survey (ACES) data. Our main empirical result confirms that firm diversity is negatively related to the efficiency of investment (firm value), which is consistent with the majority findings of recent studies. However, once we distinguish between Capital Expenditure for structures and equipment, we find that while firms do inefficiently allocate Capital for equipment, they efficiently allocate Capital for structures. These results suggest that when the decision has long-lasting repercussions, headquarters will, more often than not, make the correct choice.
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the efficiency of internal Capital markets evidence from the annual Capital Expenditure survey
Social Science Research Network, 2008Co-Authors: Sumit Agarwal, Iming Chiu, Victor Souphom, Guy M YamashiroAbstract:We empirically examine whether greater firm diversity results in the inefficient allocation of Capital. Using both COMPUSTAT and the Annual Capital Expenditure Survey (ACES) we find firm diversity to be negatively related to the efficiency of investment. However once we distinguish between Capital Expenditure for structures and equipment, we find that while firms do inefficiently allocate Capital for equipment, they efficiently allocate Capital for structures. These results suggest that when the decision will have long-lasting repercussions, headquarters will, more often than not, make the correct choice.
Ashiq Ali - One of the best experts on this subject based on the ideXlab platform.
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the role of Capital Expenditure forecasts in debt contracting
Social Science Research Network, 2018Co-Authors: Ashiq Ali, Zhongwen FanAbstract:This study examines whether firms’ Capital Expenditure forecasts can act as a commitment to not engage in expropriation of lenders through opportunistic investment activities. We find that firms with higher leverage and lower credit quality are more likely to issue Capital Expenditure forecasts. Furthermore, for firms that issue Capital Expenditure forecasts, investment efficiency is greater and loan spreads are lower, and these associations are stronger when the forecasts are more credible. We do not find similar results for earnings forecasts. These results suggest that Capital Expenditure forecasts can be a commitment mechanism to reduce contracting costs with creditors.
