Understanding resource investments

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


The Millennium Boom of 2003–2011 made the resources industry highly profitable and led to a surge in new projects around the world. This had major implications for the Australian economy: Resource investment accounted for almost half of all business investment at the peak and the buoyancy of the sector helped Australia to avoid the worst of the global financial crisis. Using the event-study approach, this article examines the wealth-creating effects of new resource projects at the individual company level. The results indicate substantial increases in shareholder returns occur around the time of announcements of government approval for projects, the finalization of feasibility studies and changes in the status of projects such as when a company decides to finally commit to invest in a project. Government approval is the most important milestone in the life cycle of a project, where abnormal returns around 4% are realized on announcement day.

Original languageEnglish
Pages (from-to)1950-1962
Number of pages13
JournalApplied Economics
Issue number20
Publication statusPublished - 27 Apr 2017


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