Seasoned equity issues: The Korean experience

  title={Seasoned equity issues: The Korean experience},
  author={Manjeet S. Dhatt and Yong Hyeon Kim and Sandip Mukherji},
Abstract Studies of Korean rights issues find large positive abnormal returns for several months around rights issue announcements, in contrast to the negative abnormal returns generally documented for seasoned equity issue announcements in the U.S. We investigate this curious phenomenon by testing a large sample of Korean rights issues over a 15-year period and find a significant positive abnormal return only in the announcement month; this abnormal return is smaller than those reported by… CONTINUE READING