The importance of the sequence in UK rights issues

Iqbal, Abdullah (2008) The importance of the sequence in UK rights issues. Journal of Business Finance and Accounting, 35 (1-2). pp. 150-176. ISSN 0306-686X. (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)

The full text of this publication is not available from this repository. (Contact us about this Publication)
Official URL


This study examines the market reaction to UK rights issues announcements and also investigates the position of these issues in the sequence in which the firms make multiple rights issues. The sample consists of 569 rights issues made by 243 industrial and financial firms over the period 1988–1998. The results suggest that the UK market responds negatively to earlier issues in the sequence made by multiple rights issuers. This negative reaction diminishes and becomes insignificant at or after the third issue. In addition, the study shows that the favourable response to later rights issues in the sequence is due to the diminishment in the level of information asymmetry around such issues.

Item Type: Article
Uncontrolled keywords: rights issues, seasoned equity offerings, information asymmetry, market reaction
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Abdullah Iqbal
Date Deposited: 18 Mar 2009 17:22
Last Modified: 02 May 2014 14:32
Resource URI: (The current URI for this page, for reference purposes)
  • Depositors only (login required):