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Informed trading before rights issues

dc.contributor.authorKoenig-Matsoukis, Laure
dc.date.accessioned2012-04-23T15:14:44Z
dc.date.available2012-04-23T15:14:44Z
dc.date.issued2012
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/9015
dc.language.isoenen
dc.subjectSeasoned equity offeringsen
dc.subjectSecurity offeringen
dc.subjectSelling activityen
dc.subjectbuying activityen
dc.subjectprice pressureen
dc.subjectorder imbalancesen
dc.subjectinformative tradingen
dc.subjectmanipulative tradingen
dc.subjecttrading strategiesen
dc.subjectrights offersen
dc.subject.ddc332en
dc.subject.classificationjelG24en
dc.subject.classificationjelG38en
dc.subject.classificationjelG39en
dc.titleInformed trading before rights issuesen
dc.typeDocument de travail / Working paper
dc.description.abstractenThis 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.en
dc.publisher.nameUniversité Paris-Dauphineen
dc.publisher.cityParisen
dc.identifier.citationpages32en
dc.relation.ispartofseriestitleCahier de recherche FBF Chaire de Finance d'entrepriseen
dc.relation.ispartofseriesnumber2012-02en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelEconomie financièreen


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