@techreport{830f5e0a0dfe4873968d3382b63a7a33,
title = "Can the Stock Market anticipate Future Operating Performance? Evidence from Equity Rights Issues",
abstract = "This paper examines whether the stock market valuation impact of rights issues is consistent with subsequent operating performance of issuing firms. Analysing a sample of rights issues in the Netherlands, we find that a significant stock price decline takes place with the announcement of rights issues. We then analyse post-rights issue operating performance and find that, consistent with the decline in stock price during the announcement period, issuing firms also exhibit a significant decline in their operating performance. Our analysis thus demonstrates that the stock market can successfully anticipate future changes in operating performance of firms.",
keywords = "equity offerings, rights issues, valuation effect, firm performance",
author = "M.R. Kabir and P.G.J. Roosenboom",
note = "Pagination: 33",
year = "2000",
language = "English",
volume = "2000-22",
series = "CentER Discussion Paper",
publisher = "Finance",
type = "WorkingPaper",
institution = "Finance",
}