Seasoned Equity Offerings or Capital Deductions? The Reaction of Stock Prices: Evidence from Taiwan

Chen, Suduan

doi:10.1080/1540496x.2015.1097991

Cited by 5 publications

(1 citation statement)

References 25 publications

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“…Some researchers found a positive response to the issuance of rights (Alhashel and Alojayan, 2015;Ariff et al, 2007;Paskelian and Bell, 2010), while some others found a negative response (Akron, 2013; Barnes and Walker, 2006;Feng et al, 2018;Iqbal, 2008;Krishnan et al, 2010). Some researchers explain these different responses by a variety of approaches, including by associating them with variations in the motivation of right offerings among companies (Brisker et al, 2014;Kim and Purnanandam, 2014;Veld et al, 2018;Yang et al, 2016), variations of inherent attributes in the issuers (Chan and Walter, 2014;Chen, 2017;Dutordoir et al, 2018;Fu and Huang, 2016;Liu et al, 2016;Naveen et al, 2018), and variations of investor biases in responding to the rights (Devos et al, 2017;Dutta, 2017;Huang et al, 2016).…”

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confidence: 99%

The Intra-Industry Spillovers of Indonesian Right Offerings

Rafik¹,

Arafah²

2019

MIX

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This study aims to examine the spillover effect of right offerings to the industry on the Indonesian Stock Exchange in the period 2009-2016. This study is designed using event study methodology. In total, there are 96 issuing companies (issuers) and 1205 non-issuing companies (non-issuers) used as the sample which was obtained using a purposive sampling technique. The test for information content on the right issues was conducted using standard t-test on the average cumulative abnormal return of issuers and non-issuers in the period t-10 to t+10 around the issuance. The research found positive abnormal returns for issuers in t0 to t+4 but did not confirm the spillover effect to non-issuers over the observed (window) periods. The average cumulative abnormal returns are randomly distributed during the window period. These results confirm the absence of intraindustry effect of right issues on the non-issuers’ performance

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