Return of Equity Issues in the Spanish Stock Market from the Investor’s Perspective, during the 1997-2012 Period

Parreño Santa-Olalla, Javier; Ruiz López, Felipe y Roux Martinez, Felix Eduardo (2013). Return of Equity Issues in the Spanish Stock Market from the Investor’s Perspective, during the 1997-2012 Period. En: "7th International Conference on Industrial Engineering and Industrial Management - XVII Congreso de Ingeniería de Organización", July 10-12th, 2013, Valladolid. ISBN 978 -84 -616-5410-9. pp. 154-162.

Descripción

Título: Return of Equity Issues in the Spanish Stock Market from the Investor’s Perspective, during the 1997-2012 Period
Autor/es:
  • Parreño Santa-Olalla, Javier
  • Ruiz López, Felipe
  • Roux Martinez, Felix Eduardo
Tipo de Documento: Ponencia en Congreso o Jornada (Artículo)
Título del Evento: 7th International Conference on Industrial Engineering and Industrial Management - XVII Congreso de Ingeniería de Organización
Fechas del Evento: July 10-12th, 2013
Lugar del Evento: Valladolid
Título del Libro: Industrial Engineering and Complexity Management”. Book of Proceedings of the 7th International Conference on Industrial Engineering and Industrial Management - XVII Congreso de Ingeniería de Organización
Fecha: 2013
ISBN: 978 -84 -616-5410-9
Materias:
Palabras Clave Informales: Equity Issues Returns Pecking Order
Escuela: E.T.S.I. Industriales (UPM)
Departamento: Ingeniería de Organización, Administración de Empresas y Estadística
Licencias Creative Commons: Reconocimiento - Sin obra derivada - No comercial

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Resumen

Is it profitable for an investor, from a risk-return perspective, to acquire a stake in a quoted company when a capital increase is announced? This paper analyses the return obtained from the investment in equity issues with cash contribution and pre-emptive rights, aimed at funding corporate activities: acquisitions, investments in new facilities and/or strengthening the balance sheet of the companies undertaking the equity issue. During the 16 years covered by the study, the results show a negative average excess risk-adjusted return of almost 5%, from the moment that the equity offer is announced until the completion of the preferential subscription period. To obtain this excess return, the difference between the nominal Internal Rate of Return (IRR) and the expected return, using the CAPM, is computed for each equity issue. The intention behind this method is to eliminate the effects of time and any other possible effect on the stock price during the period of the analysis.The results from this article are consistent with the Pecking Order theory for the Spanish Stock Market also six months after the preferential subscription period. However, there is a positive return after three months.

Más información

ID de Registro: 36963
Identificador DC: http://oa.upm.es/36963/
Identificador OAI: oai:oa.upm.es:36963
URL Oficial: http://www.insisoc.org/CIO2013/en/welcome.html
Depositado por: Memoria Investigacion
Depositado el: 06 Abr 2016 15:48
Ultima Modificación: 24 Feb 2017 15:38
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