Common stock performance and the availability of new equity capital for the mineral industries

Journal Article · Sat Jan 01 04:00:00 EST 1977 · Mater. Soc.; (United States)

OSTI ID:6796438

Sani, E

In view of capital shortage, it is clear that in the 1970s and at least in part of the 1980s, companies and industries will have to compete more fiercely and vigorously for new capital. The present paper undertakes the task of investigating some of the factors that may explain why in the last few years the miscellaneous metals, steel, aluminium, and the non-metals industries have been having difficulties in raising new equity capital. The difficulties are related to their ex post performance on the secondary stock market (NYSE) for existing common stocks. The paper is divided into six sections. The second section defines mineral industries and also outlines some of their special characteristics. The third section provides the theoretical framework for the models employed in the empirical study. It includes a discussion of the capital-asset-pricing model, the justifications for using the beta coefficient as a measure of risk, and the measurement of securities performance. The fourth section provides a discussion of the empirical study. It includes the specification of the hypotheses to be tested, and an outline of the methodology employed in the empirical part of the present study. The fifth part discusses the findings. Finally, the last section presents the implications of the findings both as they pertain to the individual companies within the mineral industries, as well as the mineral industries sector as a whole.

• Research Organization: Pennsylvania State Univ., University Park
• OSTI ID: 6796438
• Journal Information: Mater. Soc.; (United States), Journal Name: Mater. Soc.; (United States) Vol. 1:3/4; ISSN MSOCD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290400* -- Energy Planning & Policy-- Energy Resources
ALLOYS
ALUMINIUM
AVAILABILITY
CAPITAL
ELEMENTS
FINANCING
INDUSTRY
INVESTMENT
IRON ALLOYS
IRON BASE ALLOYS
METALS
MINERAL INDUSTRY
RISK ASSESSMENT
SIMULATION
STEELS