STOCK-MARKET REACTION TO CAPITAL-INVESTMENT DECISIONS - EVIDENCE FROMBUSINESS RELOCATIONS

Authors
CHAN SH GAU GW WANG K
Citation
Sh. Chan et al., STOCK-MARKET REACTION TO CAPITAL-INVESTMENT DECISIONS - EVIDENCE FROMBUSINESS RELOCATIONS, Journal of financial and quantitative analysis, 30(1), 1995, pp. 81-100
Citations number
15
Categorie Soggetti
Economics,"Business Finance
Journal title
Journal of financial and quantitative analysis → ACNP
ISSN journal
00221090
Volume
30
Issue
1
Year of publication
1995
Pages
81 - 100
Database
ISI
SICI code
0022-1090(1995)30:1<81:SRTCD->2.0.ZU;2-8
Abstract
We investigate the stock market reaction to 447 announcements of busin ess relocation decisions in the 1978-1990 period. We find that the sto ck market reaction to such decisions is tied to the motive for the rel ocation and the implied prospects for the firm, with the type of facil ity being relocated playing an insignificant role. Our finding reconci les several results in the literature concerning the stock market reac tion to announcements of capital investment decisions.