Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/187672
Authors: 
Chen, Shenglan
Ma, Hui
Year of Publication: 
2017
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 10 [Year:] 2017 [Issue:] 2 [Pages:] 167-188
Abstract: 
We show that peer effects influence corporate investment decisions. Using a sample of China's listed firms from 1999 to 2012, we show that a one standard deviation increase in peer firms' investments is associated with a 4% increase in firm i's investments. We further identify the mechanisms, conditions and economic consequences of peer effects in firms' investment decisions. We find that peer effects are more pronounced when firms have information advantages and the information disclosure quality of peer firms is higher, or if they face more fierce competition. When firms are industry followers, are young or have financial constraints, they are highly sensitive to their peers firms. We also quantify the economic consequences generated by peer effects, which can increase firm performance in future periods.
Subjects: 
Peer effects
Corporate investment
Managerial learning
Peer effects
Corporate investment
Managerial learning
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
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