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 .
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| Official URL http://dx.doi.org/10.1080/13518470802560642 |
Abstract
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.
| Item Type: | Article |
|---|---|
| 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) |
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