Picture of UK Houses of Parliament

Leading national thinking on politics, government & public policy through Open Access research

Strathprints makes available scholarly Open Access content by researchers in the School of Government & Public Policy, based within the Faculty of Humanities & Social Sciences.

Research here is 1st in Scotland for research intensity and spans a wide range of domains. The Department of Politics demonstrates expertise in understanding parties, elections and public opinion, with additional emphases on political economy, institutions and international relations. This international angle is reflected in the European Policies Research Centre (EPRC) which conducts comparative research on public policy. Meanwhile, the Centre for Energy Policy provides independent expertise on energy, working across multidisciplinary groups to shape policy for a low carbon economy.

Explore the Open Access research of the School of Government & Public Policy. Or explore all of Strathclyde's Open Access research...

Strathprints

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

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

Author(s):Balachandran, B, Faff, Robert and Theobald, M
Item type:Article
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:11 Jan 2019 03:29
URI:https://strathprints.strath.ac.uk/id/eprint/41062
Export data:
CORE (COnnecting REpositories)