Announcement Effects of Capital Expenditure and R&D Expenditure in Different Stages of Firm Life Cycle

• Main Authors: Lin, Peng-Yu, 林芃諭
• Other Authors: Shih, Yi-Cheng
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/98674877348880497824

碩士 === 國立臺北大學 === 金融與合作經營學系 === 103 === We are endeavoring to analyze the announcement effects of capital expenditure and R&D expenditure of the listed companies in the United States of America by dividing these firms into three groups, which is on behalf of each life stage, based on Anthony and Ramesh (1992). The sample is derived from a news database called the FACTIVA, including the announcement events of capital expenditure and R&D expenditure and the sample period of capital expenditure announcements is from 1990 to 2013 and that of R&D is from 2002 to 2013. First, for capital expenditure announcements, we find that growth firms have positive announcements while stagnant firms are negative. However, the results of mature firms are quite ambiguous. In addition, for R&D expenditure announcements, there are positive announcements for firms during the growth stage while in the other stages the results are not strong enough. The reasons for those ambiguous results could be attributed to other factors that we have not found which might both have positive and negative influence on the announcement effects.