01666cas a2200241 a 4500 AALejournalIMF009216 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852585 1018-5941 BD-DhAAL BD-DhAAL Hu, Zuliu. Stock Market Volatility and Corporate Investment / Zuliu Hu. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Despite concerns are often voiced on the so called 'excess volatility' of the stock market, little is known about the implications of market volatility for the real economy. This paper examines whether the stock market volatility affects real fixed investment. The empirical evidence obtained from the US data shows that market volatility has independent effects on investment over and above that of stock returns. Volatility and its changes are negatively related to investment growth. To the extent volatility depresses fixed capital formation and hence future income growth, the results suggest the desirability of reducing stock market volatility. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1995/102 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/102/001.1995.issue-102-en.xml IMF e-Library