Discounts in Placing Pre-Renounced Shares in Rights Issues
Discounts in Placing Pre-Renounced Shares in Rights Issues
复制标题
以供股方式配售预先放弃股份的折扣
DOI:
10.1111/j.1468-5957.2007.02016.x
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发表时间:
2007
期刊:
影响因子:
--
通讯作者:
Seth Armitage
中科院分区:
文献类型:
--
作者:
Seth Armitage
The paper presents evidence from UK rights issues on the discounts at which large blocks of new shares plus rights are sold. The shares are renounced by the shareholders entitled to them and placed with passive investors at substantial discounts of around 8% to the expected ex-rights midpoint price of the existing shares. Tests indicate that the discounts arise because of uncertainty about issuer value and inelastic demand for the shares rather than because the issuing companies are overvalued. The finding that selling renounced shares is costly removes an apparent advantage of rights issues compared with open offers and private placings.