Do managers learn from stock prices in emerging markets? Evidence from China

• Published in: The European journal of finance Vol. 28; no. 4-5; pp. 377 - 396
• Main Authors: Chen, Sicen, Lin, Shuping, Xiao, Jinli, Zhang, Pengdong
• Format: Journal Article
• Language: English
• Published: London Routledge 24.03.2022; Taylor & Francis LLC
• Subjects: Companies; Corporate governance; Efficiency; Emerging markets; Financial incentives; Information role of price; Information technology; investment efficiency; Investments; Learning; learning hypothesis; Openness; Prices; Real effect of stock price; Stock prices

In this study, we examine whether managers learn from stock prices when making investment decisions in the context of emerging markets. Adopting the Shanghai-Hong Kong Stock Connect scheme launched by the Chinese government as a quasi-natural experiment, we determine that openness to global investor...