Artikel
Discount, transparency and announcements effects of equity rights offerings: international evidence
Equity rights offerings and their respective announcement effects have been studied extensively in the literature. Our study expands upon these studies and focuses on those announcement effects and the relation between the discount of an equity rights offering and the announcement effect. Previous theoretical and empirical analyses show that firms can signal their quality via the discount in an equity rights offering and demonstrate a negative relation between the discount and the announcement effect. We argue that this link is only relevant in environments where signalling is possible and necessary. These are financial markets with a particularly low level of capital market transparency, i.e. high information asymmetry. We calculate announcement effects for an international sample of equity rights offerings and show that the negative effect of the discount on announcement effects can only be observed in environments with a low capital market transparency. Hence, our study estimates announcement effects across several different countries and is thus among the first to analyse signalling considerations for equity rights offerings in different transparency environments.
- Sprache
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Englisch
- Erschienen in
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Journal: Journal of Business Economics ; ISSN: 1861-8928 ; Volume: 91 ; Year: 2021 ; Issue: 5 ; Pages: 733-758 ; Berlin, Heidelberg: Springer
- Klassifikation
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Management
Information and Market Efficiency; Event Studies; Insider Trading
International Financial Markets
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Thema
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Equity rights offering
Transparency
Discount
Event study
- Ereignis
-
Geistige Schöpfung
- (wer)
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Bobenhausen, Nils-Christian
Salzmann, Astrid Juliane
- Ereignis
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Veröffentlichung
- (wer)
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Springer
- (wo)
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Berlin, Heidelberg
- (wann)
-
2021
- DOI
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doi:10.1007/s11573-020-01023-8
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Bobenhausen, Nils-Christian
- Salzmann, Astrid Juliane
- Springer
Entstanden
- 2021
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ANNOUNCEMENTS
Discount, transparency and announcements effects of equity rights offerings : international evidence
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