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Svein olav Krakstad and Peter Molnar
 
''Characteristics of Norwegian Rights Issues''
( 2015, Vol. 35 No.1 )
 
 
In this paper we study Norwegian rights issues with focus on the announcement effects of raising seasoned equity. The abnormal returns at announcement in Norway are around −8% to −10% for rights issues, and this is much higher than what is found in other countries. The average book-to-market and debt-to-assets ratios are lower for companies that issue equity with other SEO types than with rights issues. This indicates that firms using rights issues are less able to time the equity issuance than the firms that use other SEO types. In addition, the listed rights lose on average around 30% of their value during the offer period.
 
 
Keywords: SEOs, Rights Issues, Announcement effects, Underpricing
JEL: G1 - (G11, G13, G13) Portfolios, Investments, Asset and Futures Pricing, Trading Volume & Bond Interest Rates
G2 - Financial Institutions and Services: General
 
Manuscript Received : Mar 29 2015 Manuscript Accepted : Mar 29 2015

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