Investment opportunities and market reaction to capital expenditure decisions

被引：88

作者：

Chung, KH ^{[1
]}

Wright, P

Charoenwong, C

机构：

[1] Memphis State Univ, Fogelman Coll Business & Econ, Memphis, TN 38152 USA

[2] Chulalongkorn Univ, Fac Commerce & Accountancy, Dept Banking & Finance, Bangkok 10330, Thailand

来源：

JOURNAL OF BANKING & FINANCE | 1998年 / 22卷 / 01期

关键词：

investment opportunities; tobin's q; event study; capital expenditure;

D O I：

10.1016/S0378-4266(97)00021-6

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

In this study, we argue that share price reaction to a firm's capital expenditure decisions depends critically on the market's assessment of the quality of its investment opportunities. We postulate that announcements of increases (decreases) in capital expenditures positively (negatively) affect the stock prices of firms with valuable investment opportunities. Contrarily, we predict that announcements of increases (decreases) in capital spending negatively (positively) affect the share prices of firms without such opportunities. Our empirical results are generally consistent with these predictions. Overall, empirical evidence supports our conjecture that it is the quality of the firm's investment opportunities rather than its industry affiliation which determines the share price reaction to its capital expenditure decisions. (C) 1998 Elsevier Science B.V. All rights reserved.

引用

页码：41 / 60

页数：20

共 50 条

[21] The impact of perceived risk on the capital market's reaction to outsourcing announcements [J].

Gewald, Heiko ;

Gellrich, Tom .

INFORMATION TECHNOLOGY & MANAGEMENT, 2007, 8 (04) :279-296

[22] INVESTMENT APPRAISAL TECHNIQUES AND CONSTRAINTS ON CAPITAL INVESTMENT [J].

Hunjra, Ahmed Imran ;

Batool, Iram ;

Niazi, Ghulam Shabbir Khan ;

Rehman, Ijaz Ur .

ACTUAL PROBLEMS OF ECONOMICS, 2012, (130) :27-33

[23] Efficiency of Local Government Capital Expenditure [J].

Suseno, Deky Aji ;

Rahmadhani, Amalia ;

Suwartiningsih ;

Al Azizah, Rosi Hanafiah .

ICE-BEES 2021, 2022,

[24] Complementary Assets and Investment Decisions [J].

Pastor-Agustin, Gema ;

Ramirez-Aleson, Marisa ;

Espitia-Escuer, Manuel .

EMERGING MARKETS FINANCE AND TRADE, 2011, 47 :25-39

[25] Foreign Assets Management and Capital Expenditure: Firm-level Evidence from 45 Emerging Market Economies [J].

Zehri, Chokri .

MALAYSIAN JOURNAL OF ECONOMIC STUDIES, 2022, 59 (01) :93-114

[26] The capital market reaction to Central Environmental Protection Inspection: Evidence from China [J].

Zeng, Huixiang ;

Dong, Beiyun ;

Zhou, Qiong ;

Jin, Youliang .

JOURNAL OF CLEANER PRODUCTION, 2021, 279

[27] The Capital Market Reaction and the Influencing Mechanism of the Establishment of the Data Basic Institutional System [J].

Bai, Liu ;

Zhang, Ailian .

SOCIAL SCIENCES IN CHINA, 2024, 45 (01) :134-156

[28] Sport and emerging capital markets: market reaction to the 2022 World Cup announcement [J].

Abuzayed, Bana .

INTERNATIONAL JOURNAL OF ISLAMIC AND MIDDLE EASTERN FINANCE AND MANAGEMENT, 2013, 6 (02) :122-141

[29] Indonesian Capital Market Reaction to Jakarta's Large Scale Social Restrictions [J].

Wicaksono, Nur Wahyu Catur ;

Aryani, Y. Anni ;

Setiawan, Doddy .

INDONESIAN CAPITAL MARKET REVIEW, 2022, 14 (02) :79-91

[30] Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment [J].

Yang Lei ;

Qiang Zhou ;

Waiman Cheung ;

Xiling Cui ;

Ling Peng .

Electronic Commerce Research, 2023, 23 :973-1005

← 1 2 3 4 5 →