Monday, March 16, 2009

SSRN-Stock Market Liquidity and the Rights Offer Paradox by Edith Ginglinger, Laure Koenig, Fabrice Riva

Class preparation yields another cool find! The Right's paradox has been discussed for the three decades (See Smith 1977). In a single sentence, the paradox is why so few firms use rights issues when they appear cheaper (at least at first glance). Over the past 32 years, researchers have documented some costs of rights issues that are not apparent at first glance. This research is further

0 comments:

Post a Comment