Logo image
THE INTRAINDUSTRY TRANSFER OF INFORMATION INFERRED FROM ANNOUNCEMENTS OF CORPORATE SECURITY OFFERINGS
Journal article   Peer reviewed

THE INTRAINDUSTRY TRANSFER OF INFORMATION INFERRED FROM ANNOUNCEMENTS OF CORPORATE SECURITY OFFERINGS

The Journal of finance (New York), v 47(5), pp 1935-1945
01 Dec 1992

Abstract

Business & Economics Business, Finance Economics Social Sciences
This study investigates the extent to which information inferred by investors from initial announcements of corporate security offerings affects share prices in the capital markets. The empirical tests measure the response in the common stock prices of both firms announcing a security offering and non-announcing firms operating in the same industry. Small but significantly negative abnormal returns are shown by industry shares upon initial announcements of common stock, convertible debt, and straight debt public offerings. Such an industry response indicates that share prices incorporate an inside assessment of factors relevant to the valuation of an industry subset of firms.

Metrics

Details

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Web of Science research areas
Business, Finance
Economics
Logo image