Strathprints Home | Open Access | Browse | Search | User area | Copyright | Help | Library Home | SUPrimo

Long term performance following rights issues and open offers in the UK

Ngatuni, P. and Capstaff, J. and Marshall, A. (2007) Long term performance following rights issues and open offers in the UK. Journal of Business Finance and Accounting, 34 (1-2). pp. 33-64. ISSN 0306-686X

Full text not available in this repository.

Abstract

This study finds evidence of significant long-term underperformance following rights issues made during 1986-95 in the UK. The findings are resilient to a number of methodological controls. In contrast, our results for a smaller sample of open offers made during 1991-95 show strong positive performance over a 5-year post-issue period, implying that firms making open offers had better growth prospects than firms making rights issues. During 1986-90, a period when open offers were rarely used, firms appeared to be making rights issues to exploit overvaluation. However, this was not evident for rights issues made during 1991-95, a period when open offers were more commonly used.

Item type: Article
ID code: 5533
Keywords: rights issues, open offers, long-term performance, business finance, accountancy, Commerce
Subjects: Social Sciences > Commerce
Department: Strathclyde Business School > Accounting and Finance
Related URLs:
    Depositing user: Strathprints Administrator
    Date Deposited: 01 Mar 2008
    Last modified: 28 May 2013 15:56
    URI: http://strathprints.strath.ac.uk/id/eprint/5533

    Actions (login required)

    View Item