Author

Yiwei Zhang

Date of Award

2016

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

First Advisor

Jason Smith

Abstract

Does the market matter for more than investment? by Jason Smith examines how themultiple effects of the market (through stock prices) can affect a corporation. The mainfindings are that low stock prices precede lower costs and lower investments. The maininnovation of this work is showing that the market can matter for more than a simpleinvestment. Low stock prices imply that the market may disagree with investment and leadthe manager to reduce costs. This result does not appear to be driven by financial constraints.

Included in

Economics Commons

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