Stock Price Informativeness,Capital Allocation Efficiency And Corporate Value

A corporate's ability to generate earnings for shareholders can be directly and objectively measured by the value of a corporate.The value of a company can be influenced by many factors,such as capital structure,corporate governance and industry environment.We research how current stock price informativeness and current capital allocation efficiency will influence corporate value by panel regression model.Then we build dynamic distributed lag model to further research the time lag effect when each variance influence corporate value..We also divide all corporates into excessive investment corporates and insufficient investment corporates,and then study how each variance will work on corporates' value.In this paper,we choose the Tobin Q as the proxy variable for the value of the company,and we choose with the fluctuation of stock price non synchronization index as the proxy for the stock price informativeness,and we refer to the research of Richardson et al.(2006)to measure the efficiency of capital allocation.Then we select the listed companies' data in China in during 2009 to 2015 as the sample.From our empirical research we can come into the conclusion that,in total,the stock price informativeness and capital allocation efficiency corporate value both have dynamical influence to corporates' value for Chinese A share listed corporates;And the lag term of corporates' also have significant influence to corporates' value.In details,first,current stock price informativeness is positively correlate to corporate's value,and this still exist either excessive investment corporates or insufficient investment corporates.And the lag term of stock informativeness also can influence corporates' value whatever the corporate is excessive investment or insufficient investment.Secondly,improving the current capital allocation efficiency can't significantly improving value of corporate.However,one-period lagged capital allocation efficiency have significantly influence to corporate's value,and this is more obvious for excessive investment corporates.Finally,the historical information of corporate also have significant influence to corporates' value,but this kind of influence attenuate with time out.