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.
Palavras-chave:
Equity and bond issues, event studies
Como Citar
Castillo, A. (2016). The announcement effect of bond and equity issues: evidence from Chile. Estudios De Economía, 31(2), pp. 177–205. Recuperado de https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40865
