The Effect of Capital Investments on the Stock Returns by Corporate Governance
Young S. Park
Kim, Nam Gon
Yong Hyeon Kim
The main purpose of this study is to empirically investigate the effect of corporate capital investments on stock returns by corporate governance. The results show that stock-price responses to announcements of capital investments are significantly positive on average, particularly for the group of firms with high corporate governance index and for the non-chaebol group of firms. Further, we find that investment motives, dividend decision, and ownerships have insignificant effects on the abnormal stock returns.
capital investments,abnormal stock returns,announcement effect,firm value,corporate governance
[ 07327 ] 67-8, Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Korea TEL. +82-2-2003-9921 FAX. +82-2-2003-9979 E-mail. office@korfin.org COPYRIGHT(C) SINCE 1987 KOREAN FINANCE ASSOCIATION. All rights reserved.