Rights offerings in Spain: Effects on ex-rights stocks during the subscription period

Consuelo Riaño, Francisco-Javier Ruiz and Rafael Santamaría ()
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Consuelo Riaño: Dpto Gestión de Empresas, Universidad Pública de Navarra
Francisco-Javier Ruiz: Dpto Gestión de Empresas, Universidad Pública de Navarra
Rafael Santamaría: Dpto Gestión de Empresas, Universidad Pública de Navarra

Journal of Asset Management, 2006, vol. 7, issue 3, No 8, 255-272

Abstract: Abstract This paper examines the influence of the subscription rights market on the liquidity and the trading activity of ex-rights stocks during the subscription period. The results reveal that the liquidity of the ex-rights stocks, except on the two first trading days, increases during this period. Trading activity also increases, particularly in the first week and the last two weeks. The subscription rights market and the ex-rights stocks market, however, are not fully integrated markets and, in the case of non-free non-Ibex35 issues, they are practically segmented.

Keywords: seasoned equity offering; subscription rights; liquidity; trading activity; microstructure (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1057/palgrave.jam.2240217

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