Using micro data from Duke University Using micro data from Duke University quarterly survey of Chief Financial Officers, we show that corporate investment plans as well actual are explained by CFOs’ expectations of earnings growth. The information in expectations data is not subsumed by traditional variables, such as Tobin’s Q or discount rates. We also show that errors in CFO expectations of earnings growth are predictable from past and other data, pointing to extrapolative structure of expectations.

Expectations and investment

GENNAIOLI, NICOLA;
2016

Abstract

Using micro data from Duke University Using micro data from Duke University quarterly survey of Chief Financial Officers, we show that corporate investment plans as well actual are explained by CFOs’ expectations of earnings growth. The information in expectations data is not subsumed by traditional variables, such as Tobin’s Q or discount rates. We also show that errors in CFO expectations of earnings growth are predictable from past and other data, pointing to extrapolative structure of expectations.
2016
9780226395609
9780226268873 (eISBN)
Eichenbaum, Martin; Parker, Jonathan
NBER Macroeconomics Annual 2015, Number 30
Gennaioli, Nicola; Ma, Yueran; Shleifer, Andrei
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3984475
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