Does strategic planning create value? The stock market’s belief

Abstract

This article addresses a key issue: is strategic planning rewarded by the stock market? Using event‐study methodology, this article examined the market values of companies during the time period that they revealed information about their strategic planning focus, function or orientation. The results indicate that the stock market favors the long range‐planning horizon adopted by companies.

Citation

Desai, A.B. (2000), "Does strategic planning create value? The stock market’s belief", Management Decision, Vol. 38 No. 10, pp. 685-693. https://doi.org/10.1108/00251740010379731