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- Title
PRICE EFFECTS IN RIGHTS OFFERINGS.
- Authors
NELSON, J. RUSSELL
- Abstract
The article looks at an empirical test of whether the price effects of stock dividends and splits are also observed in the quasi-split characteristics of rights, as presented in the paper "Effective Stock Splits," by C. A. Barker, published in the January-February 1956 issue of "Harvard Business Review." It is noted that approximately two-thirds of new issues of common stock are sold through privileged subscriptions. Market price effects studies are often found to be consistent with studies on the market effects of stock splits and dividends. The author concludes that earnings increases have the same order of influence as dividend increases on adjusted market prices in the six months following rights offerings.
- Subjects
STOCK prices; DIVIDENDS; STOCKS (Finance); RIGHTS offerings; MARKET prices; STOCK splitting
- Publication
Journal of Finance (Wiley-Blackwell), 1965, Vol 20, Issue 4, p647
- ISSN
0022-1082
- Publication type
Article
- DOI
10.2307/2977252