The evidence in this note indicates that the average stock market reaction to news of ordinary equity issues by quoted companies may depend on the share issue method employed. Using a sample of announcements made in the UK between 1989 and 1991 we find that the market response is significantly...

A number of recent empirical studies have examined the extent to which growth indicators (or 'proxies') affect the market reaction to major corporate announcements. Although the method employed in these studies is broadly similar, the results to date have varied quite markedly. One key...