@techreport{NBERw8093,
 title = "Does Firm-specific Information in Stock Prices Guide Capital Allocation?",
 author = "Artyom Durnev and Randall Morck and Bernard Yeung",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8093",
 year = "2001",
 month = "January",
 URL = "http://www.nber.org/papers/w8093",
 abstract = {We show that firms in industries in which firm-specific stock price variation is larger use more external financing and allocate capital with greater precision in the sense that their marginal q ratios are closer to one. According to the Efficient Markets Hypothesis, greater firm-specific stock price variation reflects higher intensity firm-specific information capitalization in stock prices. We propose that higher firm-specific price variation may be an indicator of greater functional-form market efficiency in the sense of Tobin (1982).},
}