Preliminary, not for quotation Comments Welcome October 1998 Valuation Effects of Global Equity Offerings: Evidence from Depositary Receipts
نویسندگان
چکیده
We examine the shareholder wealth effects associated with 97 global equity offerings made by foreign firms in the United States. Although on average these global offerings are not associated with a negative stock price response, firms located in emerging markets have negative abnormal returns while those located in developed markets have positive abnormal returns. In addition, we find that the use of proceeds, amount offered, as well as firm size are related to the announcement effects. Interestingly, firm size is positively related to abnormal returns. Overall, our results add to the literature which suggests that the managerial incentives may not be homogenous across countries.
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