Using China’s stock market as the testing venue, this study examines how corporate transparency helps explain the sensitivity of stock prices to general investor sentiment. We find that firms with low corporate transparency, measured by a battery of proxies including state ownership, the prevalence of related party transactions, accrual-based earnings management, audit opinions, and the quality...

This paper estimates the foreign exchange rate exposure of 6,917 U.S. nonfinancial firms on the basis of stock prices and corporate cash flows. The results show that several firms are significantly exposed to at least one of the foreign exchange rates Canadian Dollar, Japanese Yen and Euro, and significant exposures are more frequent at longer horizons. The percentage of firms for which stock p...

A new method is introduced and applied to analyze changes in productivity of Þrms harvesting a natural capital stock. The index-number technique decomposes the contributions of output prices, variable input prices, Þxed inputs and productivity to Þrm proÞts, adjusted for changes in the natural capital stock. An application of the method is given using micro-level data from a common-pool resourc...

Business investment in equipment surged in the 1990s, then fell back sharply after mid-2000. A popular explanation of these trends holds that the soaring stock market and declining computer prices of the last decade encouraged excess investment, setting the stage for the retrenchment that followed. Yet an analysis of the factors underlying investment suggests that capital spending patterns in t...

a r t i c l e i n f o JEL classification: C33 G10 O49 Q43 Keywords: Oil prices Stock market depth Economic growth Other macroeconomic variables Panel VAR Granger causality G-20 countries This paper examines the linkages between economic growth, oil prices, depth in the stock market, and three other key macroeconomic indicators: real effective exchange rate, inflation rate, and real rate of inte...

This paper investigates whether sentiment analysis of public mood derived from large-scale Twitter feeds can be used to identify important events and predict movements of stock prices. We used the volume and sentiment polarity of Apple financial tweets to identify important events and predict future movements of Apple stock prices. Statistical analysis using the Granger causality test showed th...