R&D project announcements and the impact of ownership structure

Jones, E. and Danbolt, J. (2003) R&D project announcements and the impact of ownership structure. Applied Economics Letters, 10(14), pp. 933-936.

Abstract

This paper examines the stock market reaction to research and development (R&D) announcements made by listed UK companies. R&D projects on average are found to be associated with significant positive abnormal returns. However, the level of these abnormal returns varies significantly with the ownership structure of the firm. In particular, it is found that the level of abnormal returns are significantly lower for companies with large institutional investors. This negative relationship may be associated with short-term pressures on the performance of institutional investors.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: 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 Economics Letters
• Publisher: Routledge
• ISSN: 1350-4851
• Copyright Holders: Copyright © 2003 Routledge
• First Published: First published in Applied Economics Letters 10(14):933-936
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher