摘要：The study addressed to: (1) investigated the market reaction toward right issue announcement;(2) gave an empirical evidence of association of stock market reaction with firm’s operational performance in the future;(3) examined specific variables of right issue s that might explain the reaction of the stock market at the announcement and the operational performance of firms in the future. Result shows that the Indonesian stock market gave negative reaction on the third and fourth days after the right issue announcement. So the stock market had late caught the information. Further,the firms did the right issue s gained higher operating performance level in the second and third year than average level in the terms of firm operating performance in the same industry that did not do the right issue . The changes of firm’s operating performance in the future tend to the positive change. The issue-price was the specific variable of the right issue that influenced positively on the abnormal return. Meanwhile,the issue-price negatively affected on the future firm’s operating performance. In the empirical evidence equity right issue s,the stock market reaction might to anticipate the change of the future firm’s operating performance through the specific variable issue-price with opposite direction.
关键词：the ability of stocks market;firm’s operational performance;right issue
