Rights offerings, takeup, renounceability, and underwriting status
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
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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
Author(s): | Balachandran, B, Faff, Robert and Theobald, M | Item type: | Article |
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ID code: | 41062 |
Keywords: | rights offerings, underwriting status, renouceability, takeup, ownership concentration, australia, market reaction , quality signals , issue type, Accounting, Finance, Economics and Econometrics, Accounting, Strategy and Management |
Subjects: | Social Sciences > Commerce > Accounting |
Department: | Strathclyde Business School > Accounting and Finance |
Depositing user: | Pure Administrator |
Date deposited: | 10 Sep 2012 14:47 |
Last modified: | 05 Jul 2019 03:33 |
URI: | https://strathprints.strath.ac.uk/id/eprint/41062 |
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