MMU Home | Prospectus | About MMU | A-Z Index | Contacts 
 


mmuch more
 
Search:
bullet
Browse
Collection All
bullet
bullet
bullet
bullet
bullet
Listed communities
bullet
bullet
bullet
bullet

espace at MMU > Faculties > Faculty of Humanities, Law and Social Science > Discussion Papers in Economics > The rise and fall of railtrack plc: an event study

Please use this identifier to cite or link to this item: http://hdl.handle.net/2173/22433
    Del.icio.us     LinkedIn     Citeulike     Connotea     Facebook     Stumble it!

SFX Query

Title: The rise and fall of railtrack plc: an event study
Authors: Glass, Anthony
Publisher: Manchester Metropolitan University
Issue Date: Jan-2008
URI: http://hdl.handle.net/2173/22433
Additional Links: http://www.hlss.mmu.ac.uk/economics/research/discussion_papers/
Abstract: Forming Railtrack was a key part of the privatisation of British Rail (BR). Railtrack took over ownership of BR's fixed infrastructure in April 1994 and its parent company, the Railtrack Group, was floated in May 1996 on the London Stock Exchange. Despite the group posting some excellent financial results in the early years, Railtrack's record on infrastructure improvement and safety was frequently criticised. This apparent inconsistency between shareholder interests and public service obligations culminated in Railtrack being placed in administration in October 2001. In view of this apparent inconsistency the reaction of the stock market to 19 key events in modelled. Among other things, we find when Railtrack announced after the Hatfield crash that there would be a six month programme of emergency track repairs, the group's share price was marked down but it did not plummet. Even though Railtrack were in panic mode, it appears that investors decided to hold on to their shares, believing that the panic would have no long term repurcussions. This proved to be a huge error of judgement.
Type: Working Paper
Language: en
Keywords: British Rail
Privatisation
Market Model
Robust Regression
Abnormal Return
Series/Report no.: Discussion Papers in Economics
ISSN: 1460-4906
Appears in Collections: Discussion Papers in Economics

Files in This Item:
File Description Size Format View/Open
2008-01.pdf356KbAdobe PDFThumbnail
View/Open

All Items in e-space are protected by copyright, with all rights reserved, unless otherwise indicated.

 

OR Logo Powered by Open Repository | Cookies
Valid XHTML 1.0!