The announcement effect of bond and equity issues: evidence from Chile

Augusto Castillo ()

Estudios de Economia, 2004, vol. 31, issue 2 Year 2004, 177-205

Abstract: This paper analyzes the impact of security offering announcements on stock prices for a sample of 172 issues of securities in the Chilean financial market, during the 1993-2002 period. We found that the authorization of bond issues given by the SVS (Superintendencia de Valores y Seguros) produced no significant abnormal returns, and that the authorization of equity issues given by the SVS produced a significant and negative abnormal return. We also found that the magnitude of the negative abnormal return was directly related to the relative size of the equity issue.

Keywords: Equity and bond issues; event studies. (search for similar items in EconPapers)
JEL-codes: C2 G14 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:31:y:2004:i:2:p:177-205

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