Project Attributes and Market Reaction to Capital Expenditure Projects: Indian Evidence

Jadhav, Aditya Mohan and Reddy, Nagi V and Veeraraghavan, Madhu (2015) Project Attributes and Market Reaction to Capital Expenditure Projects: Indian Evidence. TAPMI, Manipal, Manipal.

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Abstract

This paper examines the impact of project type (new unit or subsequent expansion), project focus (core or diversified) and foreign collaboration on the market reaction to capital expenditure project announcements. Using a large sample of 1336 projects spanning the period from 1996 to 2010, we establish several new results. First, we show that the market reaction to new units is higher than that for subsequent expansions. Second, we find a negative market reaction for projects with diversified focus. Third, we find that the market reaction to projects involving foreign collaboration is higher than that for other categories of projects. Taken together, our results highlight the importance of project attributes in determining the market reaction to capital expenditure projects.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Capital expenditure, project announcements, market reaction, Project Attributes and Market Reaction to Capital Expenditure Projects: Indian Evidence
Subjects:	Finance Finance > Capital Markets/Stock Marketing
Divisions:	Finance and Strategy
Depositing User:	Ms. Vanitha K
Date Deposited:	13 Nov 2018 11:03
Last Modified:	13 Nov 2018 11:03
URI:	http://tapmi.informaticsglobal.com/id/eprint/242

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