The association between unexpected earnings and capital expenditure.

Persistent Link:
http://hdl.handle.net/10150/185980
Title:
The association between unexpected earnings and capital expenditure.
Author:
Fargher, Neil Lawrence
Issue Date:
1992
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
It has been well established in the literature that there is a positive relationship between unexpected earnings and subsequent abnormal returns. There has been little research as to whether current unexpected earnings influence investment decisions which are known to be associated with abnormal returns. The objective of this dissertation is to test whether unexpected changes in earnings are associated with changes in investment, and then whether changes in investment are associated with abnormal returns. Specifically, the empirical tests examine (i) the association between investment and subsequent unexpected earnings, (ii) the association between unexpected earnings and subsequent changes in investment, and (iii) the association between changes in investment and abnormal security returns. The results are mixed. The results do not support an association between investment and subsequent unexpected earnings. The results also fail to support an association between changes in actual investment and abnormal security returns. The evidence is generally consistent with a positive association between unexpected earnings and subsequent changes in investment. This association is stronger for firms with available debt capacity.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Investments.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Business Administration; Graduate College
Degree Grantor:
University of Arizona
Committee Chair:
Dhaliwal, D. S.

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleThe association between unexpected earnings and capital expenditure.en_US
dc.creatorFargher, Neil Lawrenceen_US
dc.contributor.authorFargher, Neil Lawrenceen_US
dc.date.issued1992en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractIt has been well established in the literature that there is a positive relationship between unexpected earnings and subsequent abnormal returns. There has been little research as to whether current unexpected earnings influence investment decisions which are known to be associated with abnormal returns. The objective of this dissertation is to test whether unexpected changes in earnings are associated with changes in investment, and then whether changes in investment are associated with abnormal returns. Specifically, the empirical tests examine (i) the association between investment and subsequent unexpected earnings, (ii) the association between unexpected earnings and subsequent changes in investment, and (iii) the association between changes in investment and abnormal security returns. The results are mixed. The results do not support an association between investment and subsequent unexpected earnings. The results also fail to support an association between changes in actual investment and abnormal security returns. The evidence is generally consistent with a positive association between unexpected earnings and subsequent changes in investment. This association is stronger for firms with available debt capacity.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectInvestments.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineBusiness Administrationen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.chairDhaliwal, D. S.en_US
dc.contributor.committeememberTrombley, M. A.en_US
dc.contributor.committeememberKallapur, S.en_US
dc.contributor.committeememberAtkins, Allen B.en_US
dc.contributor.committeememberDyl, E. A.en_US
dc.identifier.proquest9307646en_US
dc.identifier.oclc703282954en_US
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