出版社：The International Institute for Science, Technology and Education (IISTE)
摘要：The purpose of this study examines the market reaction to right issue announcements and a test of market efficiency in Colombo Stock Exchange (CSE) by using a sample of 78 events (61 companies) from different sectors of the emerging market during the period 2008 to 2012. Standard event study methodology is employed to find the results. The empirical results show that average abnormal returns (1.54%) is statistically significant at 5% level around the right issue announcement day. This study finds that right issue has a stronger good signal and significant information content in the CSE of the sample companies. On average, market positively reacts significantly to the right issue day. Further, the largest positive cumulative average abnormal returns (7.44%) are observed during the period of (0, +10). This delayed market response supports the inefficient dissemination of information to investors since stock prices adjust very slowly to public information that investors can earn significant abnormal returns by trading in the stocks after the right issue announcement.
关键词：Right Issue; Market Efficiency; Abnormal Returns; Window Period; and Event Study
