This thesis examines the changes in the investment behavior of parent companies that issue tracking stocks as a financial engineering instrument. Several authors and researchers have different perspectives on the performance and efficiency of this instrument. This thesis studies the efficiency of internal capital market, taking evidence from the performance of tracking stocks. Subsequently, the real question of this thesis is whether the sensitivity of investment in parent companies changes before and after the issue of tracking stocks.
In the analyses performed, I obtained results consistent with the view that the sensitivity of investment increases after the tracking stock issue. However, the results are not conclusive and not statistically significant. I conclude that the results represent at best weak evidence that investment in the parent company becomes more sensitive to investment opportunity after the tracking stock issue.
| Identifer | oai:union.ndltd.org:ucf.edu/oai:stars.library.ucf.edu:honorstheses1990-2015-1349 |
| Date | 01 January 2003 |
| Creators | Aleman, Adriana |
| Publisher | STARS |
| Source Sets | University of Central Florida |
| Language | English |
| Detected Language | English |
| Type | text |
| Source | HIM 1990-2015 |
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