Cash Flow News and the Investment Effect in the Cross-Section of Stock Returns

A bibliometrics data analysis of management science

“…In recent years, scholars in China have published papers in MS mainly based on the analysis of website electronic flow data (Chen and Yao 2017), the role of information intermediary played by analysts in company disclosure (Huang et al 2018), capacity sharing under supply and demand mismatch (Guo and Wu 2018), daily transaction such as the business growth rate of Groupon based on experimental analysis (Li et al 2018), the complex algorithm for solving the quadratic Markov process (Chen et al 2018b), the difference of production efficiency caused by behavior price discrimination (Jing 2017), the value dependence of consumers on marketing strategy (Yu et al 2015), the impacts of corporate insolvency on loan spreads of main suppliers (Houston et al 2016), the relationship between the level of information uncertainty and the stock returns (Mao and Wei 2016), etc. Above all, it can be seen that some of the researches are consistent with the mainstream researches, such as the studies of consumer behavior, the analysis of Groupon by the method of experimental analysis and the theoretical study of the classical Markov process.…”

What is the real relationship between cash holdings and stock returns?

“…5 The q-theory models true economic profitability rather than accounting earnings. As accounting earnings expense R&D expenditures, which are associated with higher future economic profitability, accounting earnings do not investment-to-capital ratio (I/K) at the end of fiscal year t to measure capital investment (e.g., Xing, 2008;Mao and Wei, 2016). We also use accruals (Acc) in fiscal year t to measure working capital investment (e.g., Wu, Zhang, and Zhang, 2010).…”