The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior
Abstract
This paper develops a model of inefficient managerial behavior in the face of a rational stock market In an effort to mislead the market about their firms' worth, managers forsake good investments so as to boost current earnings. In equilibrium the market is efficient and is not fooled: it correctly conjectures that there will be earnings inflation, and adjusts for this in making inferences. Nonetheless, managers, who take the market's conjectures as fixed, continue to behave myopically. The model is useful in assessing evidence that has been presented in che “myopia” debate. It also yields some novel implications regarding firm structure and the limits of intergation.
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Citations
Cites
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“…Heinle 2016; Martin and Moser 2016), whether CSR activities require a long-term investment horizon and serve to mitigate managerial myopia (e.g., Stein 1989; Bénabou and Tirole 2010), what the optimal level of CSR activities is (e.g., McWilliams and Siegel 2001), or why CSR activities vary…”
BackgroundCorporate immunity to the COVID-19 pandemic
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Metadata
- Authors
- Stein, J. C.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1989-11
- Volume
- 104
- Issue
- 4
- Pages
- 655
- ISSN
- 0033-5533 (ISSN-L)
- OpenAlex
- W2056238342
- Cited by
- 2,563
- References
- 1
- FWCI
- 39.13
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
