The economic impact of capital expenditures: Environmental regulatory delay as a source of competitive advantage?

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dc.citation.issue1-Feb
dc.citation.volume40
dc.contributor.authorWirth C
dc.contributor.authorChi J
dc.contributor.authorYoung M
dc.date.available1/01/2013
dc.date.issued1/01/2013
dc.description.abstractThis study tests the proposal that by undertaking voluntary capital expenditures that are subject to lengthy environmental regulatory delays, listed companies can gain a competitive advantage. The stock market is found to react positively to new capital expenditure announcements when projects are expected to experience long delays in obtaining environmental regulatory approval. Two sources of potential competitive advantage are firm learning and first mover advantages. Lengthy delays in regulatory processes and high compliance costs incurred for environmentally-sensitive projects may allow firms opportunities to develop specialised capabilities and/or to deter industry competitors and new entrants, resulting in greater expected project NPVs. The findings also underscore the importance of non-financial environmental information to investors in their assessment of firm value. © 2013 Blackwell Publishing Ltd.
dc.description.confidentialFALSE
dc.format.extent115 - 141
dc.identifier.citationJournal of Business Finance and Accounting, 2013, 40 (1-2), pp. 115 - 141
dc.identifier.doi10.1111/jbfa.12009
dc.identifier.eissn1468-5957
dc.identifier.elements-id39293
dc.identifier.harvestedMassey_Dark
dc.identifier.issn0306-686X
dc.identifier.urihttps://hdl.handle.net/10179/10906
dc.relation.isPartOfJournal of Business Finance and Accounting
dc.subject.anzsrc1501 Accounting, Auditing and Accountability
dc.subject.anzsrc1502 Banking, Finance and Investment
dc.titleThe economic impact of capital expenditures: Environmental regulatory delay as a source of competitive advantage?
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Economics and Finance
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