Misvaluation and Corporate Inventiveness

For helpful comments, we thank Malcolm Baker, Itzhak Ben-David, Justin Birru, Tony Cookson, Richard Crowley, Peter DeMarzo, Robin Greenwood, Michael Hirshleifer, Ming Huang, Mark Kamstra, Byoung Kang, Jung-Wook Kim, Dongmei Li, Chris Polk, Eric So, Sheridan Titman, John Wei, Mike Weisbach, and Zhaoxia Xu; conference discussants, Tao Chen, Henrik Cronqvist, Jody Grewal, Adrien Matray, Anywhere Sichochi, and Noah Stoffman; conference and seminar participants at the China International Conference in Finance in Shenzhen, Financial Accounting and Reporting Section Meeting in Charlotte, HBS IMO conference, NBER Behavioral Finance meeting, Ohio State University Alumni conference, American Finance Association conference in Philadelphia, City University of London, Hong Kong Polytechnic University, INSEAD, Laval University, McMaster University, Nanyang Technological University, National University of Singapore, Singapore Management University, University of Glasgow, University of Iowa, University of Notre Dame, University of Roma, USC, UT Austin, University of Vienna, and Washington University. We thank Zheng Sun for help with the mutual fund flow measure. We thank the National Center for the Middle Market (USA) and the Social Sciences and Humanities Research Council (Canada) for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• December 21, 2017
• May 31, 2018
• July 17, 2018