Balachandran, B and Faff, Robert and Theobald, M and Van Zijl, T (2012) Rights offerings, subscription period, shareholder takeup and liquidity. Journal of Financial and Quantitative Analysis, 47 (1). pp. 213-239. ISSN 0022-1090
Full text not available in this repository. (Request a copy from the Strathclyde author)Abstract
We examine the role of shareholder takeup in rights offerings on the subscription period price reaction and liquidity. Our results indicate that takeup information is reflected in price adjustments over the subscription period and that quality-related information disclosed on the rights announcement date further impacts upon prices in this period. Higher shareholder takeup improves liquidity. We do find some evidence of inefficiencies in the adjustment process over the subscription period which, in part, is consistent with a model where markets are characterized by overconfident investors and which also articulates with takeup information arriving in the market.
| Item type: | Article |
|---|---|
| ID code: | 41724 |
| Keywords: | rights offerings, shareholders, liquidity, Australia, Accounting |
| Subjects: | Social Sciences > Commerce > Accounting |
| Department: | Strathclyde Business School > Accounting and Finance |
| Related URLs: | |
| Depositing user: | Pure Administrator |
| Date Deposited: | 24 Oct 2012 17:00 |
| Last modified: | 10 Dec 2012 16:48 |
| URI: | http://strathprints.strath.ac.uk/id/eprint/41724 |
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