Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188349 
Year of Publication: 
2018
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 12 [Issue:] 1 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2018 [Pages:] 363-378
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
Peer effect is attractive as firms try to mimic financial decisions taken by one another. The current study explores the impact of peers' investment decisions on corporate firm's investment decisions. To capture this essence, the study utilized firm-specific characteristics as well as peer firm-specific characteristics mainly growth, leverage, market to book ratio, free cash flow and stock return. In this study, the corporate accounting data relating to firms' investment policies is taken from the published annual audited reports of the firms for the period between 2005 and 2015. GMM fixed effect model is used for data analysis. The results of the study reveal significant impact of peers' investment policies on corporate firm's investment decisions.
Subjects: 
peer effect
mimicking behavior
investment policy
leverage
cash flow
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size
389.32 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.