 Evidence on the extent of relationships among investment opportunity set proxiesApplied Economics Letters, 2003, vol. 10, issue 7, 437-441 Abstract: A number of recent empirical studies have examined the extent to which growth indicators (or 'proxies') affect the market reaction to major corporate announcements. Although the method employed in these studies is broadly similar, the results to date have varied quite markedly. One key difference amongst the previous studies relates to the nature of the proxy measures used; although each one is intended to measure a firm's investment opportunity set, more than 100 different variables have now been examined and this proliferation may represent part of the explanation for the inconsistency in overall conclusions. The present paper provides some preliminary evidence about the extent of any correlation among growth measures using UK data for 83 of the most commonly employed variables. The study reports that the various measures are generally correlated with each other in a manner which suggests that they provide a coherent signal about firms' growth prospects, and that inconsistency in the measures used may not provide the underlying reason for heterogeneity in the earlier findings. Date: 2003 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:10:y:2003:i:7:p:437-441 Ordering information: This journal article can be ordered from DOI: 10.1080/1350485032000081992 Access Statistics for this article Applied Economics Letters is currently edited by Anita Phillips More articles in Applied Economics Letters from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.