NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Investment Plans and Stock Returns

Owen Lamont

NBER Working Paper No. 6973
Issued in February 1999
NBER Program(s):   EFG

Capital expenditure plans at the beginning of the year, from a US government survey of firms, explain more than three quarters of the variation in real annual aggregate investment growth between 1948 and 1993. The negative correlation of contemporaneous investment and stock returns is explained by the negative correlation of planned investment and subsequent stock returns. Unexpected revisions to aggregate investment (actual minus plan) within a year are essentially unrelated to current stock returns, and positively related to current profits. Revisions to industry investment are positively related to industry-specific stock returns and to aggregate profits.

download in pdf format
   (1104 K)

email paper

This paper is available as PDF (1104 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6973

Published: Lamont, Owen A. "Investment Plans And Stock Returns," Journal of Finance, 2000, v55(6,Dec), 2719-2745. citation courtesy of

Users who downloaded this paper also downloaded these:
Titman, Wei, and Xie w9951 Capital Investments and Stock Returns
Acemoglu and Zilbotti w6879 Productivity Differences
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us