We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Impact of Information Release on Stock Price Volatility and Trading Volume: The Rights Offering Case.
- Authors
Bae, Sung C.; Jo, Hoje
- Abstract
This paper examines whether information released via rights offering announcements induces changes in price volatility and trading volume of underlying stock. The results of this paper provide support for the release of new information via offering announcements and evidence of its effects on price volatility and volume of underlying stock. Specifically, utilization of the announced information by investors is evidenced by greater trading volume following the announcement date than during the pre-announcement period. We interpret this result to mean that informed dominates consensus. However, stock price volatility decreased from the pre-announcement period to the post-ex pi ration period of rights offerings.
- Subjects
MARKET volatility; FINANCIAL markets; PRICES; STOCK prices; INVESTORS; RIGHTS offerings
- Publication
Review of Quantitative Finance & Accounting, 1999, Vol 13, Issue 2, p153
- ISSN
0924-865X
- Publication type
Article
- DOI
10.1023/A:1008395810033