We analyze, by means of appropriate event studies, the returns following seasoned equity offering announcements made by western European banks between 2008 and 2014. Consistently with the pertinent literature on non-financial companies, we find that shareholders experience negative returns. We highlight that the same occurs for bondholders, although not surprisingly to a smaller extent. Overall, our results show that seasoned equity offering announcements play an important signalling role also in the banking industry, despite the tight regulation and supervision by banking authorities, which should in principle reduce the impact on pricing of the information asymmetries about banks' financial conditions.

Colombo, L. V. A., Botta, M., Seasoned Equity Offering Announcements and the Returns of European Bank Stocks and Bonds, <<APPLIED ECONOMICS>>, 2019; 51 (13): 1339-1359. [doi:10.1080/00036846.2018.1527450] [http://hdl.handle.net/10807/130306]

Seasoned Equity Offering Announcements and the Returns of European Bank Stocks and Bonds

Colombo, Luca Vittorio Angelo
Secondo
;
Botta, Marco
Primo
2019

Abstract

We analyze, by means of appropriate event studies, the returns following seasoned equity offering announcements made by western European banks between 2008 and 2014. Consistently with the pertinent literature on non-financial companies, we find that shareholders experience negative returns. We highlight that the same occurs for bondholders, although not surprisingly to a smaller extent. Overall, our results show that seasoned equity offering announcements play an important signalling role also in the banking industry, despite the tight regulation and supervision by banking authorities, which should in principle reduce the impact on pricing of the information asymmetries about banks' financial conditions.
2019
Inglese
Colombo, L. V. A., Botta, M., Seasoned Equity Offering Announcements and the Returns of European Bank Stocks and Bonds, <<APPLIED ECONOMICS>>, 2019; 51 (13): 1339-1359. [doi:10.1080/00036846.2018.1527450] [http://hdl.handle.net/10807/130306]
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/130306
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? 2
social impact