R and D project announcements and the impact of ownership structure

Edward Jones; Jo Danbolt

doi:10.1080/1350485032000164017

R and D project announcements and the impact of ownership structure

Edward Jones, Jo Danbolt

Research output: Contribution to journal › Article › peer-review

20 Citations (Scopus)

Abstract

This paper examines the stock market reaction to research and development (R and D) announcements made by listed UK companies. R and 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.

Original language	English
Pages (from-to)	933-936
Number of pages	4
Journal	Applied Economics Letters
Volume	10
Issue number	14
DOIs	https://doi.org/10.1080/1350485032000164017
Publication status	Published - 15 Nov 2003

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10.1080/1350485032000164017

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R and D project announcements and the impact of ownership structure

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