This paper analyzes the impact of security offering announcements on stock prices for a sample of 172 issues of securities in the Chilean financial market, during the 1993-2002 period. We found that the authorization of bond issues given by the SVS (Superintendencia de Valores y Seguros) produced no significant abnormal returns, and that the authorization of equity issues given by the SVS produced a significant and negative abnormal return. We also found that the magnitude of the negative abnormal return was directly related to the relative size of the equity issue.
Castillo, A. (2016). The announcement effect of bond and equity issues: evidence from Chile. Estudios De Economía, 31(2), pp. 177–205. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40865
