Peer effects in decision-making:Evidence from corporate investment

• 作者: Hui Ma Shenglan Chen
• 来源期刊: 中国会计学刊：英文版
• 学科: 经济
• 年，卷（期）: 2017,（2）
• 页码范围: 167-188
• 页数: 22页
• 分类号: F275

摘要

We show that peer effects influence corporate investment decisions. Using a sample of China’s listed firms from 1999 to 2012, we show that a one standard deviation increase in peer firms’ investments is associated with a 4% increase in firm i’s investments. We further identify the mechanisms, conditions and economic consequences of peer effects in firms’ investment decisions. We find that peer effects are more pronounced when firms have information advantages and the information disclosure quality of peer firms is higher, or if they face more fierce competition. When firms are industry followers, are young or have financial constraints, they are highly sensitive to their peers firms. We also quantify the economic consequences generated by peer effects, which can increase firm performance in future periods.