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Market reactions to Australian boutique resource investor presentations

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  • Ferguson, Andrew
  • Scott, Tom
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    Abstract

    This paper examines the market reactions to 817 investor presentations by 326 Australian resource firms and finds evidence suggesting these events are informative. Furthermore, the positive returns do not reverse over the following 15 days, which contrasts with previous investor presentation research. However, consistent with the prior literature, extended long run cumulative abnormal returns are not significantly different from zero. This paper also documents stronger reactions to first time presenting firms, presentations that are announced to the market and firms exhibiting at the Africa Downunder and Excellence in Oil & Gas conferences. There are also stronger reactions for firms with lower ownership concentration. Examining boutique resource firm investor presentations adds to the existing disclosure and dissemination literature due to the presence of relatively high information asymmetry in the extractive industries, a unique setting, which contrasts with previous studies.

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    Bibliographic Info

    Article provided by Elsevier in its journal Resources Policy.

    Volume (Year): 36 (2011)
    Issue (Month): 4 ()
    Pages: 330-338

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    Handle: RePEc:eee:jrpoli:v:36:y:2011:i:4:p:330-338

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    Web page: http://www.elsevier.com/locate/inca/30467

    Related research

    Keywords: Disclosure; Information asymmetry; Event study; Extractive industries; Dissemination;

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    References

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    Cited by:
    1. Ferguson, Andrew & Feigin, Alexey & Kean, Stephen, 2013. "Gold mine feasibility study disclosure in Australia: Determinants and implications," Resources Policy, Elsevier, vol. 38(1), pages 8-17.

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