Does Financially Constraint Firms have an Access to External Finance? : The Effect of Mispricing on Corporate Financing and Investing Decisions.
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Abstract
In this paper, I discuss the impacts of stock price’s misvaluation on corporate decisions, specifically external financing and investing decisions. Stock price’s misvaluation occurs when the stock price is above or below its fundamental value. Differences in price is created by misvaluation of investors who are less informed on stock’s value. Prior literatures have examined whether stock mispricing has a real business consequence, specifically external financing decisions and investing decision of the firms. I also discuss how stock mispricing has any positive consequence to the financially constraint firms. Since financially constraint firms face higher transaction and agency costs than unconstraint firms when the raising of capital in equity market, the potential that the manager of financially constraint firms to use accruals to lead an investment decision of investor is discussed
Article Details
เนื้อหาและข้อมูลในบทความที่ลงตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นข้อคิดเห็นและความรับผิดชอบของผู้เขียนบทความโดยตรงซึ่งกองบรรณาธิการวารสารไม่จำเป็นต้องเห็นด้วยหรือร่วมรับผิดชอบใด ๆ
บทความ ข้อมูล เนื้อหา รูปภาพ ฯลฯ ที่ได้รับการตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นลิขสิทธิ์ของวารสารสภาวิชาชีพบัญชี หากบุคคลหรือหน่วยงานใดต้องการนำข้อมูลทั้งหมดหรือบางส่วนไปเผยแพร่ต่อหรือเพื่อกระทำการใดๆ จะต้องได้รับอนุญาตเป็นลายลักษณ์อักษรจากวารสารสภาวิชาชีพบัญชี ก่อนเท่านั้น
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