0000000000553721
AUTHOR
José Emilio Farinós
COMPORTAMIENTO A LARGO PLAZO DE LAS OFERTAS PÚBLICAS DE VENTA SUBSIGUIENTES EN EL MERCADO ESPAÑOL
This research investigates the long¿run after¿performance of firms conducting seasoned equity offering in the Spanish market during the period 1993¿1999. Due to statistical and conceptual problems related to the estimation and contrast of long¿horizon returns, we analyse the robustness of results to different methodologies. We obtain evidence that issuers experience negative abnormal returns economically and statistically significant during the year after the event. These results are robust to different metrics, estimations and tests used. Finally, underperformance is more severe in small, growth firms. En este trabajo estudiamos si las empresas cotizadas que realizan un oferta pública de v…
Arbitrage opportunities and event impacts on Spanish rights issues
In equity offerings in which pre-emptive subscription rights are issued, there are two ways of acquiring the company's shares: either by buying them directly on the market, or by subscribing to the new shares using the subscription rights. This could lead to the existence of arbitrage opportunities. In addition, the announcement of these processes incorporates very relevant information to the market, which could generate abnormal returns for the shares. This paper analyses both hypotheses simultaneously on the same sample and concludes that there are indeed arbitrage opportunities and also abnormal returns can be detected. Furthermore, it is also concluded that these effects are especially …
Market valuation and acquiring firm performance in the short and long term: Out-of-sample evidence from Spain
We investigate bidder’s short- and long-term performance in periods of high and low valuation market in response to announcements of acquisitions carried out by Spanish listed firms over the period 1991–2016. We find that acquirers of unlisted targets fully react at the announcement date in high valuation periods, meanwhile the underreaction of listed target bidders at the moment of the announcement in low valuation markets is the result of return continuations. In addition, we find that the market reaction do not depend on recent merger history. Therefore, we provide evidence that bidder reaction to acquisitions is not consistent with the predictions of market sentiment (optimism) after c…