The key objective of this article is to analyse the stock market reaction to capital expenditure announcements by UK firms. To attain such an objective, we adopt an 'event study' methodology. We analyse a large sample of 884 capital expenditure announcements made by 426 companies allocated in...

Variance and downside risk are different proxies of risk in portfolio management. This study tests mean–variance and downside risk frameworks in relation to portfolio management. The sample is a highly volatile market; Karachi Stock Exchange, Pakistan. Factors affecting portfolio optimization...

Purpose – The aim of this paper is to get an insight into the potential determinants of foreign direct investment (FDI) for a panel of ten OECD member countries over the period of 1985-2009. Design/methodology/approach – Granger causality tests have been implemented in the study to identify...

This study examines the value relevance of research and development (R&D) expenditures in the pre and post International Financial Reporting Standards (IFRS) periods in the UK. It also examines firm size and sector-based differences in the value relevance of R&D during the sample period between...

This paper explores the dynamic liaison between US and three developing South Asian equity markets in short and long term. To gauge the long-term relationship, we applied Johansen co-integration procedure as all the representative indices are found to be non-stationary at level. The findings...

This study examines the impact of the quality of corporate governance, as measured by a specially constructed corporate governance index, on the expected cost of equitycalculated using the capital asset pricing model (CAPM) approach. A total of 114 listed companies were investigated to analyze...

In this study, the authors explore the role of press freedom in the development of an economy, both in terms of economic growth and foreign direct investment. The relationship between press freedom, foreign direct investment, and economic growth is analyzed using a balanced panel of 115...

Cash flow statements have a longstanding history as mandated financial statement disclosures, having replaced funds flow statements. The usefulness of such disclosures with respect to one of the main purposes of financial statements—providing information relevant to the assessment of future...

Economists and financial analysts have always wondered whether or not investment in common stocks can provide hedge against inflation. In this paper we empirically tested this relationship between stock returns and inflation rate to assess the extent, if any, to which investment in common stocks...

Significant market value effects of R&D are found for UK firms of all sizes. Sector-based analyses indicate large, positive and statistically significant influences of R&D on market values of UK firms in both manufacturing and nonmanufacturing sectors.