The Post-Issue Performance of Rights Issues in Malaysia

This study focuses on the performance of rights issues in Malaysia from December 1999 to 2008. This study finds that after the announcement of rights issues, positive abnormal returns are observed using both CAR and BHAR approaches. However, the results are not significant. This finding is contradic...

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Main Author:	Noraini, Azlan
Format:	Thesis
Language:	eng eng
Published:	2009
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/1633/1/Noraini_Binti_Azlan.pdf https://etd.uum.edu.my/1633/2/1.Noraini_Binti_Azlan.pdf
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id	my-uum-etd.1633
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HG Finance
spellingShingle	HG Finance Noraini, Azlan The Post-Issue Performance of Rights Issues in Malaysia
description	This study focuses on the performance of rights issues in Malaysia from December 1999 to 2008. This study finds that after the announcement of rights issues, positive abnormal returns are observed using both CAR and BHAR approaches. However, the results are not significant. This finding is contradictory from findings in US and UK where underperformance is observed after rights issues. This study also demonstrates that the companies prefer to issues rights when the share price is increasing.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Noraini, Azlan
author_facet	Noraini, Azlan
author_sort	Noraini, Azlan
title	The Post-Issue Performance of Rights Issues in Malaysia
title_short	The Post-Issue Performance of Rights Issues in Malaysia
title_full	The Post-Issue Performance of Rights Issues in Malaysia
title_fullStr	The Post-Issue Performance of Rights Issues in Malaysia
title_full_unstemmed	The Post-Issue Performance of Rights Issues in Malaysia
title_sort	post-issue performance of rights issues in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	College of Arts and Sciences (CAS)
publishDate	2009
url	https://etd.uum.edu.my/1633/1/Noraini_Binti_Azlan.pdf https://etd.uum.edu.my/1633/2/1.Noraini_Binti_Azlan.pdf
_version_	1747827180111396864
spelling	my-uum-etd.16332013-07-24T12:12:36Z The Post-Issue Performance of Rights Issues in Malaysia 2009 Noraini, Azlan College of Arts and Sciences (CAS) College of Arts and Sciences HG Finance This study focuses on the performance of rights issues in Malaysia from December 1999 to 2008. This study finds that after the announcement of rights issues, positive abnormal returns are observed using both CAR and BHAR approaches. However, the results are not significant. This finding is contradictory from findings in US and UK where underperformance is observed after rights issues. This study also demonstrates that the companies prefer to issues rights when the share price is increasing. 2009 Thesis https://etd.uum.edu.my/1633/ https://etd.uum.edu.my/1633/1/Noraini_Binti_Azlan.pdf application/pdf eng validuser https://etd.uum.edu.my/1633/2/1.Noraini_Binti_Azlan.pdf application/pdf eng public masters masters Universiti Utara Malaysia Abhay Abhyankar, Keng-Yu Ho (2007), ‘Long-horizon event studies and event firm portfolio weights: Evidence from U.K. rights issues re-visited’, International Review of Financial Analysis 16, pp. 61– 80.Alastair Marsden (2000), ‘Shareholder wealth effects of rights issues: Evidence from the New Zealand capital market’, Pacific-Basin Finance Journal 8, pp 419–442.Ariff, M., Finn, F.J. (1989), ‘Announcement effects and market efficiency in a thin market: an empirical application to the Singapore equity market’. Asia Pacific Journal of Management 6 (2), pp 243–265. Asquith, P., Mullins, D.W., (1986), ‘Equity issues and offering dilution’, Journal of Financial Economics 15 (1/2), 61–89.Balasingham Balachandran, Robert Faff, and Michael Theobald (2008), ‘Rights offerings, takeup, renounceability, and underwriting status’, Journal of Financial Economics 89, pp 28–346.Cahit Adaoglu (2006), ‘Market reaction to “unsweetened” and “sweetened” rights offerings in an emerging European stock market’, Journal of Multinational Financial Management. 16, pp. 249–268.Cai, J. (1998), ‘The Long-Run Performance Following Japanese Rights Issues’, Applied Financial Economics, Vol. 8, No.4, pp. 419–34.Chao Chen and Xiao Chen (2007), ‘The information content of rights offerings in China’,Research in International Business and Finance 21, pp 414–427.Chen, N., (1991), ‘Financial investment opportunities and the macro economy’, Journal of Finance 46 (2), pp. 529–554.Hung-Gay Fung (2008), ‘Rights Issues in the Chinese Stock Market: Evidence of Earnings Management’, Journal of International Financial Management and Accounting 19:2.Jo-Ann Suchard (2007), ‘The impact of rights issues of convertible debt in Australian markets’, Journal of Multinational Financial Management. 17, pp. 187–202.Kim, E.H., Lee, Y.K., (1990), ‘Issuing stocks in Korea’, In: Rhee, S.G., Chang,R.P._Eds., Pacific-Basin Capital Markets Research. Elsevier, North Holland,Amsterdam.Levis, M. (1993), ‘The Long-Run Performance of Initial Public Offerings: The UK Evidence 1980-1988’, Financial Management, Vol. 22, pp. 28–41. Marı´a Jesu´s Pastor-Llorcaa,, Juan Francisco Martı´n-Ugedo (2006), ‘Long-run performance of Spanish seasoned equity issues with rights’, International Review of Financial Analysis 13, pp. 191–215.Marco Bigelli (1998), ‘The quasi-split effect, active insiders and the Italian market reaction to equity rights issues’, European Financial Management, Vol. 4, No. 2,pp.185–206.Norhana Salamudin, Mohamed Ariff,Annuar Md Nassir (1999), ‘Economic influence on rights issue announcement behavior in Malaysia’, Pacific-Basin Finance Journal 7,pp.405–427.Phoon, M.K., (1990), ‘Rights issue and its effect on security prices’. Malaysian Management Review (3) 25, 41–48.Prem G. Mathew (2002), ‘Long-horizon seasoned equity offerings performance in Pacific Rim markets’, Review of Financial Economics 11, pp. 17–333.Proches Ngatuni, John Capstaff and Andrew Marshall (2007), ‘Long-Term Performance Following Rights Issues and Open Offers in the UK’, Journal of Business Finance & Accounting, 34(1) & (2), 33–64, January/March 2007.Seth Armitage (1998), ‘Seasoned equity offers and rights issues: a review of the evidence’, The European Journal of Finance 4, 29-59.Simon Harris (2004), ‘The long-term performance of UK stocks after making rights issues’, Journal of Asset Management Vol. 4, 5, 308–317. Srinivasan, B.S., See, Y.K., (1990), ‘Rights issues and market efficiency in the Singapore Stock Exchange’. In: Saw, S.H., Lim, C.P. _Eds.., Investment Analysis and Management.Longman Publishers, Singapore.Stephen A.Ross, Randolph W.Westerfield and Bradford D.Jordan (2003), ‘Fundamentals of Corporate Finance’, Mcgraw Hill, Singapore. Vijaya B. Marisetty, Alastair Marsden,Madhu Veeraraghavan (2008), ‘Price reaction to rights issues in the Indian capital market’, Pacific-Basin Finance Journal 16, pp. 316– 340.

The Post-Issue Performance of Rights Issues in Malaysia

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