Espenlaub, S. and Iqbal, A. and Strong, N. (2009) Datastream returns and UK open offers. The European Journal of Finance, 15 (1). pp. 61-69. ISSN 1351-847X .
|The full text of this publication is not available from this repository. (Contact us about this Publication)|
We report a fundamental error in Datastream equity data for share prices and return indices relating to a failure to make any capital adjustments for UK open offers before February 2002. We re-examine the findings of Iqbal, Espenlaub, and Strong (2008), correcting for this error. We find that the short-run market reaction to open offers is now significantly positive. However, we confirm that long-run post-offer returns continue to be significantly negative up to a four-year horizon and, most importantly, that pre-issue discretionary current accruals predict the long-run underperformance, in support of the earnings management hypothesis. We continue to find no support for the timing hypothesis or the managerial response hypothesis.
|Uncontrolled keywords:||Datastream equity data; UK open offers; stock market reactions; earnings management hypothesis|
|Subjects:||H Social Sciences|
|Divisions:||Faculties > Social Sciences > Kent Business School > Accounting and Finance|
|Depositing User:||Rebecca Stevenson|
|Date Deposited:||18 Dec 2009 13:37|
|Last Modified:||18 Dec 2009 13:37|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/23520 (The current URI for this page, for reference purposes)|
- Depositors only (login required):