Seasoned Equity Offerings in Germany. Determinants of Short- and Long-run Abnormal Return
Author | : Andre Domes |
Publisher | : GRIN Verlag |
Total Pages | : 68 |
Release | : 2018-02-26 |
ISBN-10 | : 9783668647183 |
ISBN-13 | : 3668647186 |
Rating | : 4/5 (83 Downloads) |
Download or read book Seasoned Equity Offerings in Germany. Determinants of Short- and Long-run Abnormal Return written by Andre Domes and published by GRIN Verlag. This book was released on 2018-02-26 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2013 in the subject Business economics - Investment and Finance, grade: 1,0, University of Warwick, course: Msc in Finance, language: English, abstract: This paper studies the abnormal returns of seasoned equity offerings over short- and long-run horizons in Germany and their determining company characteristics. Contrary to previous findings for the German market, I find that the abnormal returns around the announcement are significantly negative with Run Up, Volatility, Firm Age and Earnings per Share as explanatory variables. The long-run abnormal returns are also significantly negative. The determinants of abnormal returns in the long-run are Run Up, Firm Age, Transaction Size, Size, Leverage and Profit Margin. The findings suggest that there is a structural break in the German market in 2002/2003. Furthermore, the theoretical explanations suggested in prior research on the U.S. market are also valid for the German market.