MARC Record from Library of Congress

LEADER: 01865cam a22003017a 4500
001 2008612464
003 DLC
005 20140911075617.0
007 cr |||||||||||
008 080612s2008 mau sb 000 0 eng
010 $a 2008612464
040 $aDLC$cDLC$dDLC
050 00 $aHB1
100 1 $aBaker, Malcolm$q(Malcolm P.)
245 10 $aCatering through nominal share prices$h[electronic resource] /$cMalcolm Baker, Robin Greenwood, Jeffrey Wurgler.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2008.
490 1 $aNBER working paper series ;$vworking paper 13762
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 6/12/2008.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuations on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering incentives based on valuation ratios, split announcement effects, and future returns, we find empirical support for the predictions in both time-series and firm-level data. Given the strong cross-sectional relationship between capitalization and nominal share price, an interpretation of the results is that managers may be trying to categorize their firms as small firms when investors favor small firms"--National Bureau of Economic Research web site.
700 1 $aGreenwood, Robin$q(Robin Marc)
700 1 $aWurgler, Jeffrey.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 13762.
856 40 $uhttp://papers.nber.org/papers/w13762