Empirical evidence on the determinants of the stock market reaction to product and market diversification announcements

Jones, E. and Danbolt, J. (2005) Empirical evidence on the determinants of the stock market reaction to product and market diversification announcements. Applied Financial Economics, 15(9), pp. 623-629. (doi: 10.1080/09603100500065461)

Abstract

The announcement of product and market diversification projects lead to significant abnormal returns of 1.1%. However, the gains are higher for new products than for new markets, and for companies with high price-earnings ratios and low (or zero) dividend yields.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Jones, Dr Edward and Danbolt, Prof Jo
• Authors: Jones, E., and Danbolt, J.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: Applied Financial Economics
• Publisher: Routledge
• ISSN: 0960-3107
• Copyright Holders: Copyright © 2005 Routledge
• First Published: First published in Applied Financial Economics 15(9):623-629
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher