search query: @author Patterson, C. S. / total: 7
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| Author: | Patterson, C. S. Ursel, N. D. |
| Title: | Rights issues and perceived growth rate dilution. |
| Journal: | Journal of Business Finance and Accounting
1993 : JAN, VOL. 20:1, p. 115-124 |
| Index terms: | RIGHTS ISSUES EARNINGS PER SHARE GROWTH THEORY PRICES USA EMPIRICAL RESEARCH |
| Language: | eng |
| Abstract: | Although the subscription price in a rights issue theoretically has no relevance for the wealth of current shareholders, there is a recurring theme in the literature that the subscription price discount may nevertheless be of practical concern to financial managers. This concern arises because of the 'dilution' of the reported growth trend in earnings and dividends per share caused by the unadjusted quasi-split effect of rights issues. The results of the empirical investigation carried out are consistent with the reality of those concerns in the case of rights issues by US public utilities in the 1960s and 70s. |
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