The Effects of Right Offering Announcements on Returns of Shares of Deposit Banks Traded in İstanbul Stock-Exchange

Kendirli, Selçuk; Elmali, Muhammet Emin

doi:10.26458/jedep.v5i1.136

Cited by 10 publications

(9 citation statements)

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“…The results of this study support research conducted by Ogada & Kalunda (2017), which states that the right issue information does not affect market returns in Kenya. Kendirli & Elmali (2016), and Mariko (2016), who stated that the announcement of rights issue had no effect on stock prices as indicated by no change in the average abnormal return. Rohit et al, (2016), explains that there is no impact from the announcement of the rights issue in India which indicates the Indian capital market is half-strong (semi-strong form).…”

Section: Methodsmentioning

confidence: 99%

Market reaction to the rights issue announcement on the Indonesia stock exchange

Dewi

Candraningrat

2019

irjmis

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Rights issue or the issuance of pre-emptive rights are the rights granted by an issuer company made to its existing shareholders to buy new shares issued within a predetermined period of time. This study aims to empirically explain the differences in abnormal returns before and after the announcement of the rights issue and to determine the form of capital market efficiency in Indonesia. Data are collected from 27 listed companies in the Indonesia Stock Exchange (IDX) that conducted a rights issue in 2014-2018. The data analysis technique used is the Kolmogorov-Smirnov Normality Test and the Parametric Statistical Test with a paired sample t-test. Based on the results of hypothesis testing not found differences in abnormal returns both before and after the announcement date indicating the market does not react to the right issue event. The results of statistical tests show a downward trend of abnormal return which is proxied in the Cumulative Abnormal Return (CAR), implying a market tends to react negatively to the announcement of the rights issue. Rights issue information causes a new equilibrium price adjustment in the market, thus making the form of efficiency of the Indonesian capital market a semi-strong form.

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Section: Methodsmentioning

confidence: 99%

Market reaction to the rights issue announcement on the Indonesia stock exchange

Dewi

Candraningrat

2019

irjmis

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“…Similar results were found in a study conducted by Lee et al (2014) in their research found that investors react negatively to the announcement of rights offers in Hong Kong and the abnormal return of rights offers offers on the day of the announcement is -12.10%. Kendirli and Elmali (2016) found negative Cumulative Average Abnormal Returns (CAAR) ten days after the announcement date. It can be said that most rights issues do not have a significant effect and there are negative market reactions, although there is research conducted by (Ridho et al 2017) showing that rights issues have a significant effect on abnormal returns and stock trading volume.…”

Section: Corporate Actions Of Emitens Indonesia Stock Exchange In 2015-2019mentioning

confidence: 99%

Analysis Semi-Strong Efficiency Market Testing Through of Right Issue Influence on Abnormal Return in Emitens Indonesia Stock Exchange Period 2017-2019

Pathonah¹,

Purwanto²,

Ermawati³

2021

Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bo

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This study aims to see the semi-strong-efficient form of the Indonesian capital market in the context of announcing rights issues. This study used 40 companies that conducted rights issues during 2017 -2019. To prove market efficiency, study uses abnormal returns with a normality test kolmogorov-smirnov. Based on the hypothesis test there is no significant difference in expected return but there are significant differences in the actual return and CAAR. The results of the analysis concluded that the right issue announcement information has information that causes differences in investor preferences that are reflected in changes in stock prices that can result in changes in abnormal returns before and after the right issue event. Rapid reaction by the market to the information received so that it is fast in decision making and empirical results show that Indonesian capital market is expressed as semi-strong form of market efficiency.

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“…Medeiros (2015) dan Kithinji (2014) menyatakan bahwa terdapat perbedaan abnormal return sebelum dan sesudah right issue karena dianggap bahwa pengumuman right issue tersebut merupakan informasi yang positif bagi pemegang saham lama. Kendirli & Elmali (2016) menyatakan bahwa terdapat reaksi negatif selama 10 hari setelah tanggal pengumuman right issue. Penelitian Apsari & Yasa (2017) menyatakan bahwa terdapat reaksi pasar negatif sebelum pengumuman right issue, dikarenakan adanya kebocoran informasi pada perusahaan yang akan melakukan pengumuman right issue.…”

Section: Pendahuluanunclassified

Perbandingan Reaksi Pasar atas Seasoned Equity Offering dengan Tujuan Investasi dan Membayar Utang

Lestari¹,

Wirama²

2020

E-Jurnal Akuntansi

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This research compares market reaction to seasoned equity offering (SEO) with investment purpose and debt repayment purpose. The research was triggered by pecking order theory’s. The sample of this research is 62 Indonesian public companies that carried out SEO during the 2013 to 2019 period. The SEO announcement date is used as event date. The event window is five days around the event date. Abnormal return is measured by market-adjusted model. The result of independent sample t-test shows that market reaction to SEO with investment purpose is better than market reaction to SEO with debt repayment purpose. Average cumulative abnormal return (CAR) of SEO with investment purpose is 0.038 and for SEO with debt repayment purpose is minus 0.006. The difference is statistically significant (p-value=0.011). Therefore, it is concluded that markets response to additional equity offering, in this case using SEO, depends on the purpose of the SEO. Keywords: Seasoned Equity Offering; Market Reaction; Abnormal Return; Market-Adjusted Model.

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The Effects of Right Offering Announcements on Returns of Shares of Deposit Banks Traded in İstanbul Stock-Exchange

Cited by 10 publications

References 0 publications

Market reaction to the rights issue announcement on the Indonesia stock exchange

Market reaction to the rights issue announcement on the Indonesia stock exchange

Analysis Semi-Strong Efficiency Market Testing Through of Right Issue Influence on Abnormal Return in Emitens Indonesia Stock Exchange Period 2017-2019

Perbandingan Reaksi Pasar atas Seasoned Equity Offering dengan Tujuan Investasi dan Membayar Utang

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