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An empirical investigation of capital expenditure announcements
dc.contributor.author | Shenoy, Catherine | |
dc.contributor.author | Vafeas, Nikos | |
dc.date.accessioned | 2015-02-13T18:05:08Z | |
dc.date.available | 2015-02-13T18:05:08Z | |
dc.date.issued | 2005 | |
dc.identifier.citation | Shenoy, Catherine, and N. Vafeas, 2005. The free cash flow effects of capital expenditure announcements. Applied Economics Letters 12, Nos. 14-15, p. 907-911. http://dx.doi.org/10.1080/1350485052000345564 | |
dc.identifier.uri | http://hdl.handle.net/1808/16665 | |
dc.description.abstract | In this paper we study the market reaction to capital expenditure announcements in the backdrop of Jensen's [1986] free cash flow hypothesis. Our initial results confirm McConnell and Muscarella’s [1985] original findings suggesting that announcement-period returns follow in sign announced changes in capital spending. Moreover, estimating regressions similar to Lang Stulz and Walkling [1991] we find evidence that is somewhat weak, supportive of the free cash flow hypothesis in explaining announcement-period returns. Finally, an alternative information-signalling explanation for the market reaction cannot be ruled out entirely. | |
dc.description.sponsorship | The authors gratefully acknowledge helpful comments from Maurice Joy, Lenos Trigeorgis, Bill Beedles, and George Pinches, from workshop participants at the University of Cyprus and the University of Kansas, and from participants in a session of the 1997 International Financial Management Association Conference held in Zurich, Switzerland. | |
dc.publisher | Taylor and Francis | |
dc.title | An empirical investigation of capital expenditure announcements | |
dc.type | Article | |
kusw.kuauthor | Shenoy, Catherine | |
kusw.kudepartment | School of Business | |
kusw.oastatus | na | |
dc.identifier.doi | 10.1080/1350485052000345564 | |
kusw.oaversion | Scholarly/refereed, author accepted manuscript | |
kusw.oapolicy | This item does not meet KU Open Access policy criteria. | |
dc.rights.accessrights | openAccess |