This paper examines large shareholders' behaviour in rights offerings and its relation to firm performance following rights offerings. Large shareholders seem to take future profitability into account when they ma...This paper examines large shareholders' behaviour in rights offerings and its relation to firm performance following rights offerings. Large shareholders seem to take future profitability into account when they make their subscription decisions in rights offerings, and firms with higher subscription rates by large shareholders exhibit higher growth potential. In addition,share price revisions are positively related to subscription rates by large shareholders. Subsequent to rights offerings, firms with higher subscription rates by large shareholders report higher accounting performance measures. I also find that the market reacts more positively to subscriptions by cash than subscriptions by real assets.展开更多
文摘This paper examines large shareholders' behaviour in rights offerings and its relation to firm performance following rights offerings. Large shareholders seem to take future profitability into account when they make their subscription decisions in rights offerings, and firms with higher subscription rates by large shareholders exhibit higher growth potential. In addition,share price revisions are positively related to subscription rates by large shareholders. Subsequent to rights offerings, firms with higher subscription rates by large shareholders report higher accounting performance measures. I also find that the market reacts more positively to subscriptions by cash than subscriptions by real assets.
