Stock Market's Reaction To Business Relocations: Canadian Evidence
Bibliographic record
Abstract
Abstract This paper provides the first empirical evidence for the Canadian market on the stock price performance of firms announcing business relocation decisions. Using a sample of 87 announcements by listed firms between 1975 and 1997, our results show that, on average, the market reacts positively to the announcements of business relocations. We observe positive abnormal returns for relocations motivated by cost savings and for unspecified reasons, and for those involving corporate headquarters and plants. We also find that relocations of divisions and relocations motivated by capacity reduction and facilities consolidations do not convey any new information to the market. Our results for plant relocations differ from those documented in studies with U. S. samples primarily because the underlying motives for plant relocations in the two countries are different. Résumé L'article qui suit propose la première donnée empirique, pour le marché canadien, sur la performance des prix boursiers des firmes qui annoncent des décisions de relocalisation de leurs activités. À partir d'un échantillon de 87 annonces faites entre 1975 et 1997 par des firmes cotées, nos résultats démontrent que, d'une façon générale, le marché réagit positivement aux annonces de relocalisation des activités. On note des revenus positifs imprévus pour les relocalisations motivées par les épargnes de coût, par des raisons imprécises, et pour les relocalisations impliquant les locaux et les installations de la firme. Nous arrivons également à la conclusion que les relocalisations des divisions et celles motivées par la réduction de la puissance ou la consolidation des installations n'apportent aucune information nouvelle au marché. Nos conclusions, en ce qui concerne la relocalisation des usines sont différentes de celles documentées dans les études menées sur des échantillons américains. Cette différence s'explique par le fait que les raisons sous‐tendant les relocalisations ne sont pas les mêmes dans les deux pays.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.006 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.003 | 0.005 |
| Science and technology studies | 0.001 | 0.001 |
| Scholarly communication | 0.002 | 0.000 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.000 | 0.001 |
| Insufficient payload (model declined to judge) | 0.008 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".