TY  - JOUR
AU  - Durnev,Artyom
AU  - Morck,Randall
AU  - Yeung,Bernard
TI  - Does Firm-specific Information in Stock Prices Guide Capital Allocation?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8093
PY  - 2001
Y2  - January 2001
UR  - http://www.nber.org/papers/w8093
L1  - http://www.nber.org/papers/w8093.pdf
N1  - Author contact info:
Randall Morck
Faculty of Business
University of Alberta
Edmonton, AB  T6G 2R6
CANADA
Tel: 780/492-5683
Fax: 780/492-3325
E-Mail: randall.morck@ualberta.ca

Bernard Yeung
National University of Singapore
Mochtar Riady Building
15 Kent Ridge Drive
BIZ 1, Level 6, #6-19
Singapore 119245
Tel: +65 6516 3075 
Fax: +65 6779 1365 
E-Mail: bizdean@nus.edu.sg
AB  - 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).
ER  -