Earnings and risk information conveyed by rights issues in Singapore.
Chew, Lai Wei.
Teong, Josephine May Ling.
Date of Issue1996
College of Business (Nanyang Business School)
This study examines two primary issues. Firstly, whether firms listed on the Stock Exchange of Singapore that issue rights exhibit excessive returns in the period surrounding the announcement of rights issue. The results reaffirm that there are excessive returns on these stocks, which imply that the market interprets rights issues as good news, thereby revising market value of the stock upwards.
NANYANG TECHNOLOGICAL UNIVERSITY