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Market reactions to Australian boutique resource investor presentations

Author

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  • Ferguson, Andrew
  • Scott, Tom

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.

Suggested Citation

  • Ferguson, Andrew & Scott, Tom, 2011. "Market reactions to Australian boutique resource investor presentations," Resources Policy, Elsevier, vol. 36(4), pages 330-338.
  • Handle: RePEc:eee:jrpoli:v:36:y:2011:i:4:p:330-338
    DOI: 10.1016/j.resourpol.2011.07.004
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    References listed on IDEAS

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    Cited by:

    1. Breu, Christopher & Schönbohm, Avo & Löcher, Markus, 2015. "Impact of investor presentations on share prices: Evidence from DAX 30 companies from 2010-2012," Working Papers 88, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    2. Fox, Kenneth A., 2017. "The usefulness of NI 43-101 technical reports for financial analysts," Resources Policy, Elsevier, vol. 51(C), pages 225-233.
    3. Kenneth W. Clements & Liang Li, 2014. "Valuing Resource Investments," Economics Discussion / Working Papers 14-27, The University of Western Australia, Department of Economics.
    4. 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.

    More about this item

    Keywords

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

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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