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Investor recognition, liquidity, and post-issue performance following rights offerings: Evidence from a frontier market

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dc.contributor.author Velayutham, E.
dc.date.accessioned 2021-02-22T09:15:57Z
dc.date.accessioned 2022-07-07T10:15:46Z
dc.date.available 2021-02-22T09:15:57Z
dc.date.available 2022-07-07T10:15:46Z
dc.date.issued 2019
dc.identifier.citation Velayutham, E., 2019. Investor recognition, liquidity, and post-issue performance following rights offerings: Evidence from a frontier market. International Journal of Accounting and Business Finance, 5(2), pp.104–120. DOI: http://doi.org/10.4038/ijabf.v5i2.47 en_US
dc.identifier.issn E-ISSN: 2448-9875
dc.identifier.uri http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/1652
dc.description.abstract This paper examines changes in investor recognition and liquidity around rights offerings in a frontier market, viz., Sri Lanka. We find that offer characteristics such as issue proceeds and offer price discounts improve investor recognition. We find that larger offer price discounts and offer proceeds are associated with increases in investor recognition. Further, we find that announcements of rights issues reduce information asymmetry and as a result, liquidity improves in the post rights issue announcement period. In addition, we find a strong positive association between liquidity improvements and increases in investor recognition. Finally, we find that greater investor recognition is negatively associated with contemporaneous and post- issue abnormal stock returns, whereas increases in liquidity are positively associated with post-issue abnormal returns. Overall, we show that rights issues in a frontier market affect both investor recognition and liquidity. en_US
dc.publisher Faculty of Management Studies & Commerce, University of Jaffna en_US
dc.subject Investor recognition en_US
dc.subject stock market liquidity en_US
dc.subject post-issue performance en_US
dc.subject rights offerings en_US
dc.title Investor recognition, liquidity, and post-issue performance following rights offerings: Evidence from a frontier market en_US
dc.type Article en_US


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