The long-run performance following Japanese rights issues

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)419-434
Journal / PublicationApplied Financial Economics
Volume8
Issue number4
Publication statusPublished - 1998

Abstract

Japanese firms conducting 260 rights issues on the Tokyo Stock Exchange between 1971 and 1986 have subsequently performed poorly. The long-term downward drift is remarkably similar to those following Japanese initial public offerings and seasoned equity offerings, accompanied by a reliable pattern of post-issue deterioration of accounting profitability. The evidence therefore reinforces the 'windows of opportunity' explanation for the new issue puzzle, since rights issues involve much fewer changes in corporate ownership structure.

Citation Format(s)

The long-run performance following Japanese rights issues. / Cai, Jun.

In: Applied Financial Economics, Vol. 8, No. 4, 1998, p. 419-434.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review