The long-run performance of seasoned stock-warrant unit offerings

Sabri Boubaker () and Hatem Mansali
Additional contact information
Sabri Boubaker: Groupe ESC Troyes en Champagne
Hatem Mansali: UMA - Université de la Manouba [Tunisie]

Post-Print from HAL

Abstract: This paper investigates the long-run performance of unit offering firms in France. Studying the period 1991–2020, the empirical results show a low subsequent long-run stock performance and post-issue decline in operating performance over 3- and 5-year periods, suggesting that unit offering firms underperform in the long-run. Additional analyses on the intended use of the proceeds show that the underperformance in the long-run of unit seasoned offerings does not depend on the intended use of the proceeds, consistent with the rationale that unit offering firms were overvalued at issuing and experienced a pre-issuance run-up. Overall, the results are in accordance with the behavioral explanation.

Date: 2022
References: Add references at CitEc
Citations:

Published in Economics Bulletin, 2022, 42 (2), pp.609-628

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-05106180

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().