search query: @author Danbolt, J. / total: 4
reference: 4 / 4
« previous | next »
| Author: | Jones, E. Danbolt, J. Hirst, I. |
| Title: | Company investment announcements and the market value of the firm |
| Journal: | European Journal of Finance
2004 : OCT, VOL. 10:5, p. 437-452 |
| Index terms: | Capital investment United Kingdom |
| Freeterms: | Event study Investment announcements |
| Language: | eng |
| Abstract: | This article investigates the stock market reaction to 402 company investment announcements made by the UK companies during the 1991-1996 period. We find the market to react more favourably to investments that 'create' future investment opportunities, than to investments which can be categorized as 'exercising' investment opportunities. The market reaction also varies with company size, with large companies tending to experience smaller responses to announcements than do smaller firms. Chung et al. (1998) reported that the quality of a firm's investment opportunities is the primary determinant of market reactions to capital expenditure decisions. The results are presented here lend some support to a role for investment opportunities in market valuations. |
« previous | next »
SCIMA