Datastream returns and UK open offers

Espenlaub, Susanne and Iqbal, Abdullah and Strong, Norman (2009) Datastream returns and UK open offers. European Journal of Finance, 15 (1). pp. 61-69. ISSN 1351-847X. (The full text of this publication is not available from this repository)

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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: Abdullah Iqbal
Date Deposited: 18 Dec 2009 13:37
Last Modified: 28 Oct 2014 13:44
Resource URI: (The current URI for this page, for reference purposes)
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