
Informed trading before rights issues
Koenig-Matsoukis, Laure (2012), Informed trading before rights issues. https://basepub.dauphine.fr/handle/123456789/9015
Type
Document de travail / Working paperDate
2012Éditeur
Université Paris-Dauphine
Titre de la collection
Cahier de recherche FBF Chaire de Finance d'entrepriseNuméro dans la collection
2012-02Ville d’édition
Paris
Pages
32
Métadonnées
Afficher la notice complèteAuteur(s)
Koenig-Matsoukis, LaureRésumé (EN)
This paper provides evidence of informed trading before and after a rights issue. First, we find significant net buying and selling activity by informed traders prior to the announcement date leading to a temporary price pressure effect. Even though those results are consistent with the presence of short-term manipulative traders, we find little evidence of manipulative trading on announcement effects. Second, we show that informed traders are able to identify the issuer’s quality once all issue characteristics have been released. They trade in a direction consistent with their private information before and after the issue: they will buy (sell) shares in SEO firms with better (worse) post-issue price performance leading to a permanent price impact.Mots-clés
Seasoned equity offerings; Security offering; Selling activity; buying activity; price pressure; order imbalances; informative trading; manipulative trading; trading strategies; rights offersPublications associées
Affichage des éléments liés par titre et auteur.
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Riva, Fabrice; Ginglinger, Edith; Koenig-Matsoukis, Laure (2009-01) Communication / Conférence
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Koenig-Matsoukis, Laure; Riva, Fabrice; Ginglinger, Edith (2009) Communication / Conférence
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Koenig-Matsoukis, Laure (2010) Communication / Conférence
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Ginglinger, Edith; Koenig-Matsoukis, Laure; Riva, Fabrice (2013-01) Article accepté pour publication ou publié
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Riva, Fabrice; Ginglinger, Edith; Koenig-Matsoukis, Laure (2009) Communication / Conférence