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Corporate Investment Decisions And Security Values, Gary G. Lichtenberg

Theses

The study of the impact of the announcement of various investment decisions of firms on their security values has occupied a central role in research in the area of finance. One has merely to skim the title pages of finance journals to confirm this preeminent position. The studies, to date, have generally used the Capital Asset Pricing Model to analyze the impact of these announcements. The development of the literature in the area of contingent claim pricing provides a new methodology in tackling the above issues. This thesis uses the option pricing framework to study the effects of two specific …