Campus Only Senior Thesis
Bachelor of Arts
© 2013 Daniyal Shahid
This paper will analyze the market reactions to news announcements of a corporate headquarter relocations for 76 firms through the time period of 1984 to 2012. Previous literature has identified that the market interprets capital expenditure decisions and acts on these interpretations, which can be found in the changes of the price of a security. The study uses an event-study methodology as well as a multiple-regression model to examine the contextual factors that play a role in influencing the corporate headquarter relocation decision. For the event-study, the event windows being used are two-day (-1,1), four-day (-2,2), fourteen-day (- 7,7), and two nineteen-day (-14,5 and -5,14) periods. The multiple regression model tests the relationship between the Average Cumulative Abnormal Returns over the event period three days prior to and after the day of the announcement (-3,3) against a number of other contextual variables.
Shahid, Daniyal, "The Drivers of Corporate Headquarter Relocations and the Effects of the Announcements on Stock Market Returns" (2013). CMC Senior Theses. 589.
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