Abstract
This chapter aims to determine whether an energy management projects (EMPs) announcement correlates with an abnormal increase in a firm's stock price. It examines whether EMP announcements correlate with positive abnormal stock price returns. The potential for increased profits via cost-reducing EMPs exists in nearly all firms. However, when allocating capital, priority is often given to revenue-enhancing projects, such as starting new product lines or joint ventures. However, to observe the long-term stock impact, the sub-samples were analyzed over additional intervals, such as, etc. The results from this study indicate that EMP announcements do correlate with significant abnormal increases in a firm's stock price. Assuming that stock analysts frequently look at balance sheets to assess a company's performance, it is reasonable to hypothesize that off-balance sheet financed EMPs would correlate with higher abnormal stock returns than EMPs where equipment was purchased by the firm.