Strategies and industrial reality: Experience from belgian firms

Abstract

results are found to be contrary to my hypothesis. For example, for the two-day (-1, 0) period, abnormal returns using the market model and OLS beta are -2.10 percent (t = -4.04) for high conversion ratio issues and are statistically quite significant. On the other hand, the relative stock price response to the low conversion ratio issues ranges from -0.54 percent (t = -1.08) under the mean returns model to -0.66 percent (t = -1.29) under the market model using delayed beta and are quite insignificant. These results are further compared to the control firms and are found to be robust and consistent.