Characteristics of Norwegian Rights Issues

Svein olav Krakstad () and Peter Molnár
Additional contact information
Svein olav Krakstad: University of Stavanger

Economics Bulletin, 2015, vol. 35, issue 1, 764-773

Abstract: In this paper we study Norwegian rights issues with focus on the announcement effects of raising seasoned equity. The abnormal returns at announcement in Norway are around −8% to −10% for rights issues, and this is much higher than what is found in other countries. The average book-to-market and debt-to-assets ratios are lower for companies that issue equity with other SEO types than with rights issues. This indicates that firms using rights issues are less able to time the equity issuance than the firms that use other SEO types. In addition, the listed rights lose on average around 30% of their value during the offer period.

Keywords: SEOs; Rights Issues; Announcement effects; Underpricing (search for similar items in EconPapers)
JEL-codes: G1 G2 (search for similar items in EconPapers)
Date: 2015-03-29
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P80.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00195

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().