This study extends UK research on rights issues by examining the link between the post-issue long-term underperformance, pre-SEO security overvaluation and post-SEO investors' under-reaction hypotheses. In contrast to prior UK studies that concentrated on different time-periods, and with results...

Purpose: In reality, financial decisions are made under conditions of asymmetric information that results in either favorable or adverse selection. As far as financial decisions affect growth of the firm, the latter must also be affected by either favorable or adverse selection. Therefore, the...