Tech Stock Valuation

Financial policy is evaluated using the ratio of capital spending to the market value

of assets, R&D expenditures relative to the market value of assets, the dividend

payout ratio, and leverage as measured by the debt-equity ratio.

Estimation results indicate that shark repellent-adopting firms generally have

long-term performance that exceeds industry norms during both pre- and post-

adoption periods. Similarly, shark repellent-adopting firms are generally charac-

terized by financial policies that are compatible with the long-term interests of

shareholders during both pre- and postadoption periods. These findings are incon-

sistent with the notion that ...