Demergers of conglomerates are a common phenomenon in financial markets across the world. Carried out with different motives generally, in a share demerger program, the company distributes the shares of demerged entity to the existing shareholders without any consideration. Demergers in Indian...

Contrary to popular belief, layoff announcements do not always lead to reduced employment. Using hand-collected data on layoff announcements for S&P 500 firms, I show that 32% of layoffs announced do not lead to employment downsizing. While the market, in the short run, does not react...

We find that the informed trading measures “abnormal O/S ratio”, “abnormal option volume” and “abnormal implied volatility skew” are negatively related to event period abnormal returns for accelerated share repurchases (ASRs) announcements. This effect is stronger for call options...

This study examines the announcement effect of convertible bond issue in Korea where the issuance of convertible bonds is increasing rapidly. We find that abnormal stock returns are positive for the firms with unusual high trading volume using a sample of listed firms in Korea Stock Exchange...

I examine the role of investor attention on seasoned equity offerings' (SEOs) outcomes. I use an archive of Thomson Reuters' news articles and third-party newswires to proxy for investor attention. I find that the volumes of news articles prior to the offerings are positively associated with the...

This paper tests for the stock market reaction to corporate debt-based securities offering. A standard event study framework is applied to calculate and test Average Abnormal Returns (AARs) and Cumulative Average Abnormal Returns (CAARs), both on and surrounding the announcement date. A...

The effect of corporate decisions concerning the profit distribution on market value of a company has been addressed by numerous empirical studies. Observations carried out in developed markets show that dividend initiation decisions result in an increase of abnormal returns. The main objective...

The effects of the decisions concerning the distribution of profits on market value of a company have been addressed by numerous empirical studies. At the beginning of the paper the author presents the main assumptions of complex and usually contradictory dividend policy theories as well as the...

This study examines the effect of rights issue announcement on firms' abnormal returns with respect to Indian firms in chemical, textile, IT and finance sectors respectively. Event study methodology has been used for the purpose of studying the rights issue announcement reaction. Liquidity...