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Datastream returns and UK open offers

Espenlaub, Susanne, Iqbal, Abdullah, Strong, Norman (2009) Datastream returns and UK open offers. European Journal of Finance, 15 (1). pp. 61-69. ISSN 1351-847X. (doi:10.1080/13518470802560642) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:23520)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided.
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
DOI/Identification number: 10.1080/13518470802560642
Uncontrolled keywords: Datastream equity data; UK open offers; stock market reactions; earnings management hypothesis
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Depositing User: Abdullah Iqbal
Date Deposited: 18 Dec 2009 13:37 UTC
Last Modified: 16 Nov 2021 10:01 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/23520 (The current URI for this page, for reference purposes)
Iqbal, Abdullah: https://orcid.org/0000-0002-3013-1007
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