Stock prices and business investment

Yaron Leitner

Business Review, 2007, issue Q4

Abstract: Is there a link between the stock market and business investment? Empirical evidence indicates that there is. A firm tends to invest more when its stock price increases, and it tends to invest less when the price falls. In ?Stock Prices and Business Investment,? Yaron Leitner discusses existing research that explains this relationship. One question under consideration is whether the stock market actually improves investment decisions.

Keywords: Stock - Prices; Investments (search for similar items in EconPapers)
Date: 2007
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