Related Links
News
Statistics
| Number of Journals | 25 |
| Number of Issues | 918 |
| Number of Articles | 7,565 |
| Article View | 12,275,710 |
| PDF Download | 8,681,655 |
The Test of the Price Pressure Effects due to the Capital Raising Plans | ||
| راهبرد مدیریت مالی | ||
| Article 2, Volume 4, Issue 2 - Serial Number 13, November 2016, Pages 25-39 PDF (320.28 K) | ||
| Document Type: Research Paper | ||
| DOI: 10.22051/jfm.2016.2480 | ||
| Authors | ||
| Ebrahim Abbasi* 1; Saeed Hoshmand2 | ||
| 1alzahra universury | ||
| 2islamic azad university of firozkoh | ||
| Abstract | ||
| The purpose of this study is to investigate the effect of capital gain plans on return cumulative and buy (sell) pressure on the days around assembly. In this study, capital gain means shareholders benefit from receivables financing (stock rights) and conversion of retained earnings into new shares (profit share) for fixed investment and development. According to the price pressure hypothesis, issuance of new shares leads to an increase in supply and accordingly, the stock returns and trading volume are affected. 100 companies which over the years from 2003 to 2014 have increased their capital investments three times were the focus of this study. For this purpose, panel data and stratified random sampling were used to collect and organize the sample companies` data. OLS regression and two-tailed T-test were used for data analysis. OLS regression results indicated that the rate of rise in capital has no significant negative effect on two day cumulative returns (the day before and the day after the assembly). Moreover, T test showed capital gain plans has no significant effect on the pressure to buy (sell) in the days around assembly. As a result, the price pressure hypothesis is not confirmed. | ||
| Keywords | ||
| Price pressure; return cumulative; pressure of buy (sell); capital gain | ||
| References | ||
|
- عباسی، ابراهیم. روشها و نظریههای انتشار سهام و قیمت بازار، تهران؛ انتشارات علمی و فرهنگی، 1383، چاپ اول. - Abarbanell, Jeffery S, Bushee, Brian J, Raedy, Jana Smith, 2001, Institutional Investor Preferences and Price Pressure, Journal of ssrn 51, 210, 129. - Ainsworth, Andrew, Fong, Kingsley, Gallagher, David R, 2008, Taxes, Price Pressure and Order Imbalance around the Ex-Dividend Day,www.ssrn.com 10, pp.132-165. - Ambrose, Brent W, Cai, Kelly N, Helwege, Jean, 2009, Fallen Angels and Price Pressure, Journal of Finance, 41, pp.1539-1820. - Asquith Paul and Mutlins Jr, David W. 1986. Equity issues and offering Dilution, Jourmal of financial Economics, 15, pp.61-89. - Blouin, Jennifer, Jana Raedy and Doug Shackelford, 2002, Equity Price Pressure from the 1998 Reduction in the Capital Gains Holding Period, The Journal of the American Taxation Association, 24, pp.70-94. - Blouin, Jennifer, Cloyd, C. Bryan, 2005, Price pressure from dividend reinvestment activity, wwwssrn.com 31, pp.105- 813. - Chen, Honghui, Gregory Noronha, and Vijay Singal, 2004, The price response to S&P 500 index additions and deletions: Evidence of asymmetry and a new explanation, Journal of Finance 59, pp.1901-1929. - Gibson, Scott, Assem Safieddine, and Sheridan Titman, 2000, Tax-motivated trading and price pressure: An analysis of mutual fund holdings 35, pp.369-386. - Jin, Li, 2004, Capital Gain Tax Overhang and Price pressure, www. Ssrn.com 12, 173, 291. - Kandel, Shamuel, Ben- Rephael, Azi, Wohl, Avi, 2009, The Price Pressure of Aggregate Mutual Funds Flows, Journal of Financial and Quantitative Analysis 25, 219-359. - Kasch, Maria, 2008, The Cross-section of S&P 500 Index Additions: Tracking Efficiency and Price Pressure Effects, Journal of ssrn 28, 215, 341. - Liang, Bing, 1999, Price pressure: Evidence from the “dartboard” column, Journal of Business 71, pp.119-134. - Masrh P.R. 1977. An analysis of equity rights issues on the London stock exchange. (Unpublished doctoral dissertation, London Graduate school of business suduies(. - Meidan, Danny, 2005, A Re-Examination of Price Pressure around Seasoned Equity Offerings, www.ssrn.com 35, pp.166 -211. - Mikkelson, Wayne H., and M. Megan Partch, 1985, Stock price effects and costs of secondary distributions, Journal of Financial Economics 14, pp.165-194 - Mitchell, Mark, Todd Pulvino and Erik Stafford, 2002, Price pressure around mergers, Journal of Finance 37, pp.28-51 - Mitchell, Mark, Todd Pulvino and Erik Stafford, 2004, Price pressure around mergers, Journal of Finance 59, pp.31-63. - Odean, Terrence, 1998, Are investors reluctant to realize their losses? Journal of Finance 53, pp.1775-1798. - Scholes, Myron, 1972, The market for corporate securities: Substitution versus price pressure and the effects of information on share price, Journal of Business 45, pp.179-211 - Smith Jr Clifford W. 1977. Alternative methods for raising capital rights versus underwritten offerings. Journal of financial economics 5 Dec. pp. 273- 307. - Zhu,PengCheng,2008,Announcement Effect and Price Pressure: An Empirical Study of Cross-Border Acquisitions by Indian Firms, Journal of Finance and Economics 13, pp.1450-2887. | ||
|
Statistics Article View: 1,294 PDF Download: 1,341 |
||