Foreign direct investments: a study of its impact on SES share prices
The benefits of foreign direct investments on the parent company of multinational corporation are abundant. Many studies have shown that through investing directly overseas, parent company or multinational corporation have managed to increase their firms' worth. However, little research was...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/63021 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | The benefits of foreign direct investments on the parent company of
multinational corporation are abundant. Many studies have shown that through
investing directly overseas, parent company or multinational corporation have
managed to increase their firms' worth. However, little research was done on
the stock investors' responses on these investments. Our study hopes to gain an
insight into Singapore investors' reactions to these investment through the use
of the event study methodology. The results indicated that generally there is no
response to the announcement of foreign direct investments on the stock
prices. This could mean that investors, on a whole, do not regard these
investment as neither favourably nor unfavourably. The results can also be
interpreted as that the Stock Exchange of Singapore is inefficient with regards
to the announcement of investing overseas. |
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