The Market Response to Exploration, Resource and Reserve Announcements by Mining Companies: Australian Data
AbstractThis paper is the first to conduct an event study on the market response to exploration, resource and reserve announcements made by mining firms. Results from an event study using a matched firm approach that suggest that markets react positively to both the exploration and the resource announcements at the time of their release but find information value in the reserve announcements possibly because all of the information in these announcements have been anticipated by the market. In fact, there is evidence to suggest a high level of anticipation of all three types of announcements which should be a matter of concern for the regulators. The other major surprising finding in the study is that in every instance the market seems to have been overly enthusiastic about the announcements, as share prices turns down almost immediately afterwards and trends downward for an extended time. This leaves open the question as to why does the market get them so horribly wrong.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Paul Woolley Centre for Capital Market Dysfunctionality, University of Technology, Sydney in its series Working Paper Series with number 7.
Length: 27 pages
Date of creation: 01 Apr 2010
Date of revision:
Contact details of provider:
Postal: PO Box 123, Broadway, NSW 2007, Australia
Phone: +61 2 9514 7777
Fax: +61 2 9514 7711
Web page: http://www.uts.edu.au/research-and-teaching/our-research/paul-woolley-centre
More information through EDIRC
Other versions of this item:
- Ron Bird & Matthew Grosse & Danny Yeung, 2013. "The market response to exploration, resource and reserve announcements by mining companies: Australian data," Australian Journal of Management, Australian School of Business, Australian School of Business, vol. 38(2), pages 311-331, August.
- NEP-ALL-2010-05-08 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kiran Thapa, 2013. "Stock Message Board Recommendations and Share Trading Activity," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 10, June.
- Gordon, Narelle & Watts, Edward & Wu, Qiongbing, 2014. "Information attributes, information asymmetry and industry sector returns," Pacific-Basin Finance Journal, Elsevier, Elsevier, vol. 26(C), pages 156-175.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Duncan Ford).
If references are entirely missing, you can add them using this form.