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Does the Market Misprice Companies’ “Strategic Alternatives” Announcements?

Reynolds Holding

This is direct evidence that the announcement causes expectations of firm value to be biased upward. Returns are adjusted for firm size and book-to-market of equity. Firms seeking strategic alternatives may have confounding characteristics or experience other corporate events that also lead to low future returns.

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ESG A Valuation Framework

Value Scope

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? . Do ESG programs impact firm value? Reputation.