Research by Professor Thomas Philippon and PhD student Germán Gutiérrez on the link between valuation and corporate investment is cited
— March 2, 2017
Excerpt from The Wall Street Journal -- "So why don’t the high profits attract competitors to build new companies—or expand existing companies into new lines of business—for less than the cost of buying stock in existing companies? The problem is longstanding, according to research by Germán Gutiérrez and Thomas Philippon at New York’s Stern School of Business. They show that the previous link between valuation and corporate investment weakened from the early 2000s, and as a result corporates have invested about 10% less than they otherwise would have done."