Balachandran, B and Faff, Robert and Theobald, M (2008) Rights offerings, takeup, renounceability, and underwriting status. Journal of Financial Economics, 89 (2). pp. 328-346. ISSN 0304-405X
Full text not available in this repository. (Request a copy from the Strathclyde author)Abstract
Rightsofferings in Australia provide valuable choices to the issuer in terms of both underwriting and renounceability. We formulate a set of hypotheses from a quality-signaling perspective, affording an analysis of the key interrelations between quality, underwriting status, renounceability, takeup, and subscription price discount. We analyse rightsofferings from two perspectives: market reaction to rights announcements and identification of the factors driving the choice of issue type. Evidence strongly supports the relation between quality signals and issue type. Using a robustly constructed takeup variable, we establish empirical relations between takeup, underwriting status, and renounceability that differ significantly from those previously reported, but which are consistent with the hypotheses developed in this paper
| Item type: | Article |
|---|---|
| ID code: | 41062 |
| Keywords: | rights offerings, underwriting status, renouceability, takeup, ownership concentration, australia, market reaction , quality signals , issue type, Accounting |
| Subjects: | Social Sciences > Commerce > Accounting |
| Department: | Strathclyde Business School > Accounting and Finance |
| Related URLs: | |
| Depositing user: | Pure Administrator |
| Date Deposited: | 10 Sep 2012 15:47 |
| Last modified: | 10 Dec 2012 17:26 |
| URI: | http://strathprints.strath.ac.uk/id/eprint/41062 |
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