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Investment opportunities and market reaction to capital expenditure decisions

Article Abstract:

Capital spending decisions by firms were found to be attractive to investor interest only when the firm presents significant investment opportunities. This runs contrary to observations that the industry type is a driver of investor interest. Share prices of firms that present significant investment opportunities were found to increase upon announcement of increases of capital spending and vice versa. No significant increases in the share prices of firms that present little investment opportunities were observed even if announcements on capital spending increases involved huge amounts.

Stockholder Relations NEC, Stockholders, Behavior, Investments, Investor relations

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Do spin-offs really create value?: the European case

Article Abstract:

Spin -off is a pro-rata distribution of the shares of a firm's subsidiary to the shareholders of the company without cash transaction, and at the end the shareholders of the parent company hold shares in both the parent company and the subsidiary. It is concluded that the capital markets in Europe efficiently react to the information contained in the spin-offs market.

Divestiture Analysis, Reports, Securities, Corporate divestiture, Divestiture, Divestment

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An empirical analysis of incremental capital structure decisions under managerial entrenchment

Article Abstract:

A model for capital decisions by entrenched managers in Dutch companies is created. There is a discrepancy between shareholder reaction and managerial decisions as a result of Dutch corporate structure.

Statistical Data Included, Management, Finance, Executives, Corporations, Corporate finance

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