Impact of foreign direct investment on stock prices
Recently, our government has emphasized the needs for Singapore firms to go regional. As a result, many Singapore firms have ventured into China, Vietnam, Malaysia, and others. In this project, our objective is to analyze the impact of the announcement of foreign direct investment on the share pr...
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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/10356/63543 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Recently, our government has emphasized the needs for Singapore firms to go
regional. As a result, many Singapore firms have ventured into China, Vietnam,
Malaysia, and others. In this project, our objective is to analyze the impact of the
announcement of foreign direct investment on the share price.
This report addresses the literature concerning the need for Singapore to build an
external economy and the investment vehiches to encourage foreign direct
investment.
The event study methodology and regression model found that there is positively
abnormal returns to be earned based on the announcement of Foreign Direct Investment; that the country of investment makes a difference in the magnitude of
the abnormal return on the day of announcement. However, the size of investment
and industry do not contribute to the variation of the abnormal returns. |
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