S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Master's Degree_경영학과)
The Asymmetric Relation Between Changes in Operational Efficiency and Stock Returns
기업 영업 효율성 변화와 주가수익률 사이의 비대칭적 관계에 대한 연구
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- operational efficiency; stock returns; asymmetric cost behavior; cost stickiness; direction of sales changes; information asymmetry
- 학위논문 (석사)-- 서울대학교 대학원 : 경영학과, 2017. 2. 황인이.
- According to prior literatures, there exists a positive relation between current stock returns and changes in operational efficiency. It indicates that equity investors reward an increase in a firm’s operational efficiency and penalize a decrease in the efficiency. However, I find that the positive relation between stock returns and efficiency changes diminishes when sales decrease. This is because in sales-declining periods, equity investors cannot discern whether the reason for a decrease (an increase) in efficiency is inefficient (efficient) management or managers’ optimistic (pessimistic) expectations about future performance. I also find that the positive relation between stock returns and efficiency changes is weakened in sales-decreasing periods, only when the efficiency changes are driven by managers’ costs adjustment decisions. Moreover, I find that the positive relation is more weakened in sales-decreasing periods in firms with lower information asymmetry. This study contributes to accounting literatures in that it suggests the direction of sales changes influences not only managers’ but also equity investors’ behavior.