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Seasoned Equity Offerings in Germany. Determinants of Short- and Long-run Abnormal Return

by Andre Domes
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Current price ₹5,103.00
Original price ₹5,969.00
Original price ₹5,969.00
Original price ₹5,969.00
(-15%)
₹5,103.00
Current price ₹5,103.00

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Book cover type: Paperback
  • ISBN13: 9783668647190
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Grin Verlag
  • Publisher Imprint: Grin Verlag
  • Publication Date:
  • Pages: 68
  • Original Price: USD 60.9
  • Language: English
  • Edition: N/A
  • Item Weight: 100 grams
  • BISAC Subject(s): Accounting / General

Seminar paper from the year 2013 in the subject Business economics - Investment and Finance, grade: 1,0, University of Warwick, course: Msc in Finance, language: English, abstract: This paper studies the abnormal returns of seasoned equity offerings over short- and long-run horizons in Germany and their determining company characteristics. Contrary to previous findings for the German market, I find that the abnormal returns around the announcement are significantly negative with Run Up, Volatility, Firm Age and Earnings per Share as explanatory variables. The long-run abnormal returns are also significantly negative. The determinants of abnormal returns in the long-run are Run Up, Firm Age, Transaction Size, Size, Leverage and Profit Margin. The findings suggest that there is a structural break in the German market in 2002/2003. Furthermore, the theoretical explanations suggested in prior research on the U.S. market are also valid for the German market.

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