Empirical evidence on the determinants of the stock market reaction to product and market diversification announcements

Empirical evidence on the determinants of the stock market reaction to product and market diversification announcements

The announcement of product and market diversification projects lead to significant abnormal returns of 1.1%. However, the gains are higher for new products than for new markets, and for companies with high price-earnings ratios and low (or zero) dividend yields.

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Bibliographische Detailangaben
Veröffentlicht in:Applied financial economics 2005-06, Vol.15 (9), p.623-629
Hauptverfasser: Jones, Edward A. E., Danbolt, Jo
Format: Artikel
Sprache:eng
Schlagworte:
Abnormal returns
Alliances
Applied economics
Capital market
Capital returns
Data analysis
Diversification
Effects
Empirical research
Enterprises
Financial economics
Human behaviour
Market structure
Product differentiation
Stock returns
Studies
United Kingdom
Yield
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Beschreibung
Zusammenfassung:The announcement of product and market diversification projects lead to significant abnormal returns of 1.1%. However, the gains are higher for new products than for new markets, and for companies with high price-earnings ratios and low (or zero) dividend yields.
ISSN:0960-3107
1466-4305
DOI:10.1080/09603100500065461