This study investigates the short and long term performance of firms listed on the Athens Stock Exchange (ASE) on the ex-rights day of seasoned equity offerings for the period from 1999 to 2006. We use the event study methodology to analyze the common stock price reaction around ex-rights days. Moreover, we assess the long-term performance of firms having a seasoned equity offering using leverage and investment ratios. The overall findings are in line with several past studies which attest positive and statistically significant abnormal returns on the ex-right day. The long term performance of those firms having a SEO seems to be affected following a SEO.
Keywords: Seasoned equity offerings, ex-right day, abnormal returns, leverage
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