 Investment opportunities and Irish equity offeringsCarole Corby and Mark Hoven Stohs The European Journal of Finance, 1998, vol. 4, issue 4, 357-367 Abstract: Numerous empirical studies confirm that the stock market reacts negatively to the announcement of an equity issue. Yet some seasoned offerings occasion a positive market response. Studies investigating the differentiation of positive from negative responses should contribute to our understanding of both market and firm behaviour. In addition, few studies to date have examined market responses in other institutional and/or geographical settings. A sample of 95 open offerings by Irish firms between 1987 and 1994 is investigated and, surprisingly, a neutral market response is discovered. The hypothesis that a positive market response is due to a firm's growth opportunities is tested. The intuition underlying this growth opportunity hypothesis is that investors perceive the potential gain in growth opportunities and willingly fund such investments. The Irish evidence supports this hypothesis. It is conjectured that the lack of a long-term debt market in Ireland may explain these results. Keywords: Stock; Offerings; Event; Studies; Investment; Opportunities; International; Investments; Irish; Stock; Returns (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:eurjfi:v:4:y:1998:i:4:p:357-367 Ordering information: This journal article can be ordered from Access Statistics for this article The European Journal of Finance is currently edited by Chris Adcock More articles in The European Journal of Finance from Taylor & Francis Journals |
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