Stock offerings in a different institutional setting: the Swiss case, 1973-1983

Loderer, Claudio; Zimmermann, Heinz (1988). Stock offerings in a different institutional setting: the Swiss case, 1973-1983. JOURNAL OF BANKING & FINANCE, 12(3), pp. 353-378. Elsevier BV

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This paper analyzes the stock price effect of equity issues in Switzerland. There, insiders are not legally prevented from using their information for personal trades, and security offerings are with almost no exception rights issues. Unlike what we find for a comprehensive sample of U.S. rights issues and a sample of U.S. general cash offerings, a significant majority of firms experiences a positive monthly announcement effect. The average abnormal return itself, however, is not significant. Also, we find evidence inconsistent with infinitely price-elastic demand functions for common stock, as well as some evidence that offer prices convey new information.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio and Zimmermann, Heinz

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0378-4266

Publisher:

Elsevier BV

Language:

English

Submitter:

Karin Dolder

Date Deposited:

30 Jan 2014 14:22

Last Modified:

29 Jan 2015 16:00

BORIS DOI:

10.7892/boris.39590

URI:

https://boris.unibe.ch/id/eprint/39590

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