We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Valuation Effects of Insurer's Security Offerings.
- Authors
Akhigbe, Aigbe; Borde, Stephen F.; Madura, Jeff
- Abstract
Valuation effects of insurers' security offerings are examined by measuring the share price response to announcements of impending security issues. Insurers exhibit unique characteristics that can cause the signal emitted by their security offerings to differ from that of other firms. An event methodology is used. Results of this analysis confirm that insurance company share prices react uniquely when compared to security offerings in other industries. For the entire sample, the market reaction in response to equity offerings or to debt offerings is more favorable than what has been found for industrial firms. Cross-sectional analyses suggest that abnormal returns associated with equity offerings are negatively related to the relative size of the offering and change in leverage and are positively related to growth in sales. Abnormal returns associated with debt offerings are positively related to the relative size of the offering and negatively related to growth in sales.
- Subjects
INSURANCE companies; INSURANCE stocks; INSURANCE rates; STOCK prices; BUSINESS valuation; INSURANCE claims; RISK management in business; COMPENSATION management; INSURANCE business activities of banks
- Publication
Journal of Risk & Insurance, 1997, Vol 64, Issue 1, p115
- ISSN
0022-4367
- Publication type
Article
- DOI
10.2307/253914