Mispricing of Stocks and Firm Investment in Competitive Industries. How Do They Influence Each Other?

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Literature Overview
  • Effect of Stock Price Evaluation on Firm Investment
    • Informational Channel
    • Equity-Channel
  • Reasons and Effects of Mispricing in Competitive Markets
• Hypotheses
• Methodology
  • Data
  • Empirical Framework
• Empirical Results
  • Findings
  • Robustness Tests
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis investigates the relationship between stock mispricing and real firm investment, with a specific focus on the influence of industry concentration. The research aims to contribute to the existing literature by exploring how market competition affects the connection between stock valuation and investment decisions.

• The impact of stock mispricing on firm investment
• The role of industry concentration in influencing the relationship between stock mispricing and investment
• The interplay of informational and financing channels in investment decisions
• The implications of mispricing for investment behavior in competitive markets
• The impact of market concentration on the effectiveness of stock prices as indicators of investment opportunities

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the research topic and provides background information on the relationship between firm investment and stock pricing. It highlights the existing research on the informational and financing roles of stock prices in influencing investment decisions.

Chapter two reviews the relevant literature on the effect of stock price evaluation on firm investment, examining both the informational and equity channels. It also discusses the reasons and effects of mispricing in competitive markets, setting the stage for the subsequent investigation.

Chapter three outlines the hypotheses of the study, which examine the influence of industry concentration on the relationship between mispricing and investment. These hypotheses are based on the existing literature and provide a framework for the empirical analysis.

Chapter four details the methodology used in the study, including the data sources, sample selection, and empirical framework. It provides a clear description of the variables used in the analysis and the statistical methods employed.

Chapter five presents the empirical results of the study, including the findings of the regression analysis and robustness tests. It discusses the significance and implications of these results for the hypotheses and for understanding the influence of market concentration on investment decisions.

Schlüsselwörter (Keywords)

The main keywords and focus topics of this thesis include stock mispricing, firm investment, industry concentration, informational channel, equity channel, competitive markets, investment opportunities, and empirical analysis. This research aims to contribute to the understanding of the relationship between financial markets and real economic activity by investigating the interplay of these key concepts.