德勤-复旦会计论坛系列讲座之一百九十五

时       间:2022年 12月27日(周二)下午2:00

地       点:腾讯会议

会议链接:https://meeting.tencent.com/dm/s1BPsI7SKO6Y

会  议  号:145 340 577

会议密码:075825

主  持 人:Rong HUANG  Professor (Fudan University)

题      目: Investor Information Processing and Cost Behavior: Evidence from the Tick Size Pilot Program

摘      要:This study examines whether the change in investors’ information processing activities affects a firm’s cost behavior using the Tick Size Pilot Program (TSPP) as a natural experiment. Prior studies document that the implementation of TSPP causes an exogeneous increase in the minimum tick size for small cap firms, leading to a sudden shift in investor behaviors from short-term algorithm trading to fundamental trading. Consistent with this shift in investors’ information processing behaviors, we find a post-TSPP increase in SG&A cost stickiness in these pilot firms, suggesting that managers are more likely to pursue long-term benefits created by SG&A spending when investors are motivated to acquire fundamental information. This effect is stronger for firms with more short-term oriented investors and higher growth opportunities in the pre-TSPP period. We also find that the market reaction to cost stickiness is stronger after the initiation of TSPP, suggesting that investors can better understand the value implication of sticky cost after TSPP. Finally, we document that pilot firms increasing the level of cost stickiness after TSPP achieve better future performance, indicating that the post-TSPP increase in cost stickiness is indeed value-enhancing. Overall, our study suggests that small firms may benefit from a market with more fundamental traders as managers are provided with more opportunities to fully realize the future value of long-term resource commitment.

 

 

会计学系

2022-12-26