The valuation effects of military contract awards surrounding 11th September
This article examines the stock market's response to military contract award announcements for the 10-year period surrounding 11 September 2001. The abnormal returns of successful grantees are examined over the short run (days −1 to +1) and long run (days −1 to +60) to determine whether these contracts were apparently overfunded. Consistent with previous studies, we find positive abnormal returns on the announcement day for both pre and post 11 September 2001 contracts. Using cross-sectional regression analysis, we do not find a statistically significant difference between the pre and post 11 September 2001 contracts in the short run. Surprisingly though, military contracts granted after 11 September 2001 were apparently underfunded when considering abnormal returns over the long run. The results are robust to the inclusion of industry effects, the use of different regression specifications and the application of alternative estimation and testing intervals.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 22 (2012)
Issue (Month): 2 (January)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAFE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAFE20|
When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:22:y:2012:i:2:p:147-164. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.