Journal
FINANCE RESEARCH LETTERS
Volume 58, Issue -, Pages -Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.frl.2023.104543
Keywords
PPI-CPI price scissors; Energy enterprises; Investment efficiency; Inventory change
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This paper investigates the impact of the widening PPI-CPI price scissors on firm investment efficiency and finds that the widening of the price scissors inhibits the investment efficiency of enterprises, mainly through triggering overinvestment.
This paper investigates the impact of the widening PPI-CPI price scissors on firm investment efficiency, based on the data from listed companies in the energy sector during 2010-2021. The results show that the widening of the PPI-CPI price scissors will inhibit the investment efficiency of enterprises, mainly by triggering overinvestment. Besides, enterprises with low valuation and private enterprises are more significantly affected by the price scissors. Inventory control and adjustment are the main impact mechanism in the above effects. This paper provides an insight for enterprises' managers to understand the consequences and mechanisms of PPI-CPI price scissors.
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