Capital Investment and Stock Returns: An Alternative Test of Investment Frictions

2010 ◽  
Author(s):  
Eric Fricke
Keyword(s):  
Stock Returns ◽  
Capital Investment ◽  
Alternative Test

Volume shocks and stock returns: An alternative test

2018 ◽  
Vol 48 ◽  
pp. 1-16 ◽  
Author(s):  
Angel Zhong ◽  
Daniel Chai ◽  
Bob Li ◽  
Mardy Chiah
Keyword(s):  
Stock Returns ◽  
Alternative Test

The Capital Investment Increases and Stock Returns

2015 ◽  
Vol 5 (1) ◽  
pp. 1-11
Author(s):  
Jung Fang Liu ◽  
◽  
Nicholas Rueilin Lee ◽  
Yih-Bey Lin ◽  
Zang-Po Hong ◽  
...  
Keyword(s):  
Stock Returns ◽  
Capital Investment

Capital Investment, Innovative Capacity, and Stock Returns

2016 ◽  
Vol 71 (5) ◽  
pp. 2059-2094 ◽  
Author(s):  
PRAVEEN KUMAR ◽  
DONGMEI LI
Keyword(s):  
Stock Returns ◽  
Capital Investment ◽  
Innovative Capacity

Liquidity and stock returns: An alternative test

1998 ◽  
Vol 1 (2) ◽  
pp. 203-219 ◽  
Author(s):  
Vinay T. Datar ◽  
Narayan Y. Naik ◽  
Robert Radcliffe
Keyword(s):  
Stock Returns ◽  
Alternative Test

scholarly journals Capital Investments and Stock Returns

2004 ◽  
Vol 39 (4) ◽  
pp. 677-700 ◽  
Author(s):  
Sheridan Titman ◽  
K. C. John Wei ◽  
Feixue Xie
Keyword(s):  
Stock Returns ◽  
Capital Investment ◽  
Cash Flows ◽  
Capital Investments ◽  
Equity Issue ◽  
Hostile Takeovers ◽  
Empire Building ◽  
Investment Return ◽  
Return Reversal

AbstractFirms that substantially increase capital investments subsequently achieve negative benchmark-adjusted returns. The negative abnormal capital investment/return relation is shown to be stronger for firms that have greater investment discretion, i.e., firms with higher cash flows and lower debt ratios, and is shown to be significant only in time periods when hostile takeovers were less prevalent. These observations are consistent with the hypothesis that investors tend to underreact to the empire building implications of increased investment expenditures. Although firms that increase capital investments tend to have high past returns and often issue equity, the negative abnormal capital investment/return relation is independent of the previously documented long-term return reversal and secondary equity issue anomalies.

scholarly journals The Impact of Trade Liquidity on the Rates of Return from Emerging Market Shares Based on the Example of Poland, Austria and Hungary

2019 ◽  
Vol 4 (343) ◽  
pp. 137-157
Author(s):  
Agata Gniadkowska - Szymańska
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Emerging Market ◽  
Futures Contracts ◽  
Stock Liquidity ◽  
Market Shares ◽  
Warsaw Stock Exchange ◽  
Long Time ◽  
Alternative Test ◽  
The Impact

In relation to assets, liquidity generally relates to the ease by which an asset can be sold immediately after purchase without incurring losses of any kind. These losses could be due to price changes or various transaction costs. This can be seen with respect to various instruments (such as stocks or futures contracts), market segments, or even entire exchanges. The importance of liquidity has been acknowledged a long time ago. A considerable number of studies have investigated stock liquidity, providing evidence that more illiquid stocks have higher returns, which may be deemed an “illiquidity premium”. This paper examines various factors which have an effect on liquidity by presenting the results of research concerning relations between liquidity and stock returns on the Warsaw Stock Exchange (WSE), the Budapest Stock Exchange (BSE) and the Vienna Stock Exchange (VSE). The main objective of the study is to determine whether there is a statistically significant relationship between the trading liquidity of the shares and the evolution of the rate of return on these shares. The applied research methodology is similar to that described by Datar, Naik and Radcliffe in their work “Liquidity and Stock Returns: An Alternative Test”.

The Role of Growth Options in Explaining Stock Returns

2014 ◽  
Vol 49 (3) ◽  
pp. 749-771 ◽  
Author(s):  
Lenos Trigeorgis ◽  
Neophytos Lambertides
Keyword(s):  
Stock Returns ◽  
Cross Section ◽  
Capital Investment ◽  
Explanatory Power ◽  
Growth Options ◽  
Risk Return ◽  
Growth Option ◽  
Growth Stocks ◽  
The Cross

AbstractWe extend the Fama-French (1992) model by considering growth option (as well as distress/leverage) variables in explaining the cross section of stock returns. We find that growth option variables, namely growth in capital investment and yet-unexercised growth options (GO), are significantly and negatively related to stock returns. Investors may be willing to accept lower average returns from growth stocks in exchange for a more favorable (positively skewed) risk-return profile. Book-to-market (BM) ratio seems to proxy for omitted distress/leverage variables. When these are explicitly accounted for, BM is not that significant. Our growth options variables have added explanatory power.

Exergoeconomic analysis of renewable multi-generation system

2020 ◽  
pp. 99-111
Author(s):  
Vontas Alfenny Nahan ◽  
Audrius Bagdanavicius ◽  
Andrew McMullan
Keyword(s):  
Capital Investment ◽  
Combined Cycle ◽  
Asian Countries ◽  
Generation System ◽  
Integrated Gasification Combined Cycle ◽  
Heating And Cooling ◽  
Integrated Gasification ◽  
Exergoeconomic Analysis ◽  
Main Components ◽  
The Cost

In this study a new multi-generation system which generates power (electricity), thermal energy (heating and cooling) and ash for agricultural needs has been developed and analysed. The system consists of a Biomass Integrated Gasification Combined Cycle (BIGCC) and an absorption chiller system. The system generates about 3.4 MW electricity, 4.9 MW of heat, 88 kW of cooling and 90 kg/h of ash. The multi-generation system has been modelled using Cycle Tempo and EES. Energy, exergy and exergoeconomic analysis of this system had been conducted and exergy costs have been calculated. The exergoeconomic study shows that gasifier, combustor, and Heat Recovery Steam Generator are the main components where the total cost rates are the highest. Exergoeconomic variables such as relative cost difference (r) and exergoeconomic factor (f) have also been calculated. Exergoeconomic factor of evaporator, combustor and condenser are 1.3%, 0.7% and 0.9%, respectively, which is considered very low, indicates that the capital cost rates are much lower than the exergy destruction cost rates. It implies that the improvement of these components could be achieved by increasing the capital investment. The exergy cost of electricity produced in the gas turbine and steam turbine is 0.1050 £/kWh and 0.1627 £/kWh, respectively. The cost of ash is 0.0031 £/kg. In some Asian countries, such as Indonesia, ash could be used as fertilizer for agriculture. Heat exergy cost is 0.0619 £/kWh for gasifier and 0.3972 £/kWh for condenser in the BIGCC system. In the AC system, the exergy cost of the heat in the condenser and absorber is about 0.2956 £/kWh and 0.5636 £/kWh, respectively. The exergy cost of cooling in the AC system is 0.4706 £/kWh. This study shows that exergoeconomic analysis is powerful tool for assessing the costs of products.

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