Efficiency of Internal Capital Markets: Evidence from Tracking Stocks
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.
This item is only available in print in the UCF Libraries. If this is your thesis or dissertation, you can help us make it available online for use by researchers around the world by downloading and filling out the Internet Distribution Consent Agreement. You may also contact the project coordinator Kerri Bottorff for more information.
Choi, Yoon K.
Bachelor of Science (B.S.)
College of Arts and Sciences
Business Administration -- Dissertations, Academic; Dissertations, Academic -- Business Administration
Length of Campus-only Access
Honors in the Major Thesis
Aleman, Adriana, "Efficiency of Internal Capital Markets: Evidence from Tracking Stocks" (2003). HIM 1990-2015. 350.