We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Do rights matter? An intraday analysis of rights issues in Australia.
- Authors
Drienko, Jozef; Sault, Stephen J.; Wong, Wai Han
- Abstract
We examine intraday abnormal returns associated with rights issue announcements in the Australian equity market over the period January 2000 to December 2022. Consistent with prior studies, we find significant abnormal returns ranging from −2.9% to −2.7% on the event day. We provide the first evidence on intraday price reactions pertaining to rights issues in Australia. Within 15 min of an announcement, we find significant abnormal trade returns of −1.2%. However, market participants are unable to profit by trading on these announcements due to transaction costs. Our results imply that the information content is fully impounded within 90 min.
- Subjects
AUSTRALIA; RIGHTS issue (Securities); ABNORMAL returns; PRICES; REPATRIATION; RIGHTS
- Publication
Accounting & Finance, 2024, Vol 64, Issue 2, p1311
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/acfi.13180