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- Title
Factors Influencing Abnormal Returns Around Bonus and Rights Issue Announcement.
- Authors
Malhotra, Madhuri; Thenmozhi, M.; Gopalaswamy, Arun Kumar
- Abstract
This paper examines the factors influencing abnormal returns around bonus and rights issue announcements. The results of the study indicate that market condition and type of industry have significant influence on abnormal returns and the bonus ratio does not have any significant effect on abnormal returns. For rights announcement, issue size and market conditions have a significant impact on returns. Firm size, operating leverage, debt-equity ratio and volatility of stock returns are the other firm-related factors that have a significant impact on stock returns around bonus announcement. But for rights issue, only firm size is the significant firm-related factor which has a positive impact on the returns.
- Subjects
FINANCIAL markets; DEBT-to-equity ratio; RIGHTS issue (Securities); RATIO analysis; FINANCIAL ratios; BUSINESS valuation
- Publication
IUP Journal of Applied Finance, 2013, Vol 19, Issue 4, p41
- ISSN
0972-5105
- Publication type
Article