EconPapers    
Economics at your fingertips  
 

Concurrent capital expenditure and the stock market reaction to corporate alliance announcements

Bruce Burton ()

Applied Financial Economics, 2005, vol. 15, issue 10, 715-729

Abstract: This paper examines the effect of concurrent capital expenditure on the market reaction to corporate alliance announcements. Based on a large sample of announcements made in the UK between 1993 and 1995, the evidence suggests that the market response is most favourable when new investment does not form part of the joint activity. The results also suggest that the decision to formalize the partnerships through the establishment of a joint venture impacts negatively on announcement period share returns. The findings are shown to be consistent with a scenario whereby the market response reflects concern about the dangers of overly-committed partnerships.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09603100500077060 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:15:y:2005:i:10:p:715-729

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/09603100500077060

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-04-17
Handle: RePEc:taf:apfiec:v:15:y:2005:i:10:p:715-729