Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9553884 | Journal of Banking & Finance | 2005 | 18 Pages |
Abstract
This study documents a significant positive announcement effect for a unique capital raising tool, stand alone warrants, in the Australian market. The result is consistent with the models of Schultz [J. Financ. Econom. 34 (1993) 109] and Mayers [J. Financ. Econom. 47 (1998) 83] where a warrant is viewed positively by the market. The results of the model developed to analyse the determinants of the announcement effect, support variants of the information asymmetry hypothesis (proxied by major shareholder pre-commitment and issue size).
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jo-Ann Suchard,