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. (Request a copy from the Strathclyde author)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: | 12 Mar 2012 10:43 |
| URI: | http://strathprints.strath.ac.uk/id/eprint/5533 |
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