The calculation of returns during seasoned equity offers

S. Armitage

doi:10.1080/1351847X.2011.601665

The calculation of returns during seasoned equity offers

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Abstract

The article analyses how the returns to a shareholder and the returns for an event study are calculated during the three types of seasoned equity offer (SEO) in use in the UK, namely rights issues, open offers and placings. The calculations differ across the two types of return and the three types of offer. Evidence from a sample of SEOs shows the large impact that the choice of calculation method has on returns. An unresolved question is whether to use discount-adjusted returns in event studies of placings.

Original language	English
Pages (from-to)	393-417
Journal	European Journal of Finance
Volume	18
Issue number	5
Early online date	21 Sept 2011
DOIs	https://doi.org/10.1080/1351847X.2011.601665
Publication status	Published - 2012

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10.1080/1351847X.2011.601665

SEO returns calculations final draft (10)
This is an Accepted Manuscript of an article published in The European Journal of Finance on 21 Sep 2011, available online: http://www.tandfonline.com/10.1080/1351847X.2011.601665
Accepted author manuscript, 231 KB

Cite this

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The calculation of returns during seasoned equity offers

Abstract

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