Corporate Consolidation: An Event Study of Historic Stock Prices in the Defense Aerospace Industry

Abstract

The focus of this MBA project is an event study of the historic daily stock price returns of select defense-aerospace firms after the announcement of a corporate consolidation. The analysis includes the historic stock prices of Boeing, Lockheed Martin, Northrop Grumman, and Raytheon, and examines instances of statistically significant abnormal returns based on estimates derived from the concurrent activity of the S&P 500 index while considering two areas of primary focus. The first area of focus is to determine how quickly the market absorbs the corporate consolidation announcement by examining the absolute maximum return on the day of or the day following the announcement. The second area of focus is with regard to how accurately the information is absorbed by the market, a question that is explored through the examination of abnormal returns on the 10th, 20th, and 40th day following the corporate consolidation announcement.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 2009
Accession Number
ADA514326

Entities

People

  • David J. Wood

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Air Platforms
  • Biomedical
  • Energy and Power Technologies
  • Materials and Manufacturing Processes
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerospace Industry
  • Aircraft Equipment
  • Aircraft Industry
  • Aircrafts
  • Airframes
  • Business Administration
  • Commercial Aircraft
  • Defense Systems
  • Fixed Wing Aircraft
  • Information Systems
  • Military Aircraft
  • Passenger Aircraft
  • Rotary Wing Aircraft
  • Shipbuilding
  • Space Systems
  • Spacecraft
  • Unmanned Aerial Vehicles

Readers

  • Economics
  • Naval Engineering and Maritime Security

Technology Areas

  • Space