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The long run impact of rights issues on share price performance and operating performance
Dissertation (MBA)--University of Pretoria, 2013.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2014
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| _version_ | 1867613458936102912 |
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| access_status_str | Open Access |
| author2 | Ward, Mike |
| author_browse | Ward, Mike |
| author_facet | Ward, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MBA)--University of Pretoria, 2013. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/40580 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:36:28.597Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/40580 The long run impact of rights issues on share price performance and operating performance Ward, Mike ichelp@gibs.co.za Setati, Kwena UCTD Corporations -- Valuations Stock price forecasting Dissertation (MBA)--University of Pretoria, 2013. Rights issues continue to be a well-researched topic within the field of corporate finance. The focus of this study was to consider the long-run impact of rights issue on company performance both in terms of share price performance and operating performance. The long-run perspective taken in this study adds to the literature, which usually looks at the immediate share price reaction to a rights issue announcement. The study also looked at whether the intended use of capital stated in the SENS announcement had any post-issue effect on the share price. The study found significantly negative cumulative average abnormal returns within the first year after the rights issue. This study confirms the expected negative share price reaction to a rights issue announcement. The study also found evidence that companies that use the proceeds to repay debt, invest or for general purposes had a negative share price reaction to a rights issue announcement. Companies that were vague about the intended purpose of the rights issue had the largest post-issue underperformance. The study did not find any statistically significant evidence that the rights issue announcement had any effect on the operating performance. These findings suggest that rights issues have more impact on a company’s share price, and no clear impact on the operating performance of the issuing company. lmgibs2014 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2014-07-07T08:16:17Z 2014-07-07T08:16:17Z 2014-04-30 2013 Mini Dissertation Setati, K 2013, The long run impact of rights issues on share price performance and operating performance, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/40580> http://hdl.handle.net/2263/40580 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Corporations -- Valuations Stock price forecasting The long run impact of rights issues on share price performance and operating performance |
| title | The long run impact of rights issues on share price performance and operating performance |
| title_full | The long run impact of rights issues on share price performance and operating performance |
| title_fullStr | The long run impact of rights issues on share price performance and operating performance |
| title_full_unstemmed | The long run impact of rights issues on share price performance and operating performance |
| title_short | The long run impact of rights issues on share price performance and operating performance |
| title_sort | long run impact of rights issues on share price performance and operating performance |
| topic | UCTD Corporations -- Valuations Stock price forecasting |
| url | http://hdl.handle.net/2263/40580 |