the effect of mispricing on investment and capital structure of financial constraints firms

[ ' t h e o b j e c t i v e o f t h i s s t u d y i s t o e x a m i n e t h e e f f e c t o f m i s p r i c i n g o n f i r m ’ s i n v e s t m e n t b e h a v i o r a n d c a p i t a l s t r u c t u r e . i t a l s o t e s t s t h e r o l e o f t h e l e v e l o f f i n a n c i a l c o n s t r a i n t s i n t h e r e l a t i o n s h i p b e t w e e n m i s p r i c i n g ' , ' i n v e s t m e n t a n d c a p i t a l s t r u c t u r e . u s i n g d a t a o f 1 1 0 f i r m s o f t e h r a n s t o c k e x c h a n g f r o m 1 3 8 4 ' , 1 3 8 9 , ' r e s u l t s i n d i c a t e d t h a t m i s p r i c i n g h a s n e g a t i v e i m p a c t t o f i r m s i n v e s t m e n t . h o w e v e r ' , ' t h i s e f f e c t o n l y s l i g h t l y d i f f e r e n t w h e t h e r o n h i g h f i n a n c i a l c o n s t r a i n t f i r m s ( f i n a n c i a l l y c o n s t r a i n t ) o r o n l o w f i n a n c i a l c o n s t r a i n t f i r m s ( l e s s c o n s t r a i n t ) . m o r e o v e r ' , ' t h i s r e s e a r c h a l s o f i n d t h a t m i s p r i c i n g i n f l u e n c e f i r m ’ s c a p i t a l s t r u c t u r e . b a s e d o n t h e f i n d i n g i n s t u d y ' , ' i t h a s p o s i t i v e i m p a c t t o f i r m ’ s c a p i t a l s t r u c t u r e . h o w e v e r ' , ' m i s p r i c i n g h a s n e g a t i v e i m p a c t t o f i r m ’ s c a p i t a l s t r u c t u r e i n h i g h f i n a n c i a l c o n s t r a i n t f i r m s . i n t h i s s t u d y i s u s e d o f s t a t i c t i c a l m e t h o d p a n e l d a t a . ' ]