Research Discussion Paper – RDP 9610 Share Prices and Investment

Contents

• Introduction
• Share Prices and Investment – Some Theory
• Share-Market Efficiency
• Share Prices And Investment – Empirical Results
• Share Prices and Financial Decisions
• Conclusion
• Appendix A: Unit Root Tests
• Appendix B: Data Sources
• References

The authors would like to thank Steve Morling, Chris Ryan and Malcolm Edey for helpful comments. Any remaining errors are ours. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.