Spillover Effects of Capital Expenditure Announcements Within Business Groups

I. Fen Chen, Shao Chi Chang

研究成果: Article同行評審

4 引文 斯高帕斯(Scopus)


Using the capital expenditure announcements of Taiwanese business group affiliated firms, this study examines whether the group diversification and ownership structure influence intragroup spillover effects. We find that the stock price reactions of the announcing firms are positively associated with both the stock price reactions and the post-announcement long-term performance of their non-announcing group peers. More importantly, the evidence shows that this positive spillover effect weakens for business groups associated with a pyramidal ownership structure. The evidence supports the conjecture that principal–principal conflicts play an important role in moderating the spillover effects in a business group. The findings further show that the spillover effects are stronger during periods of financial crises. Finally, in the 3-year period following announcements, the non-announcing group members experience declining industry-adjusted performance.

頁(從 - 到)709-727
期刊British Journal of Management
出版狀態Published - 2020 10月 1

All Science Journal Classification (ASJC) codes

  • 一般商業,管理和會計
  • 策略與管理
  • 技術與創新管理


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