The impact of audit quality in rights offerings

Balachandran, B., Faff, R., Nguyen, L.H.G. and Puwanenthiren, P. 2020. The impact of audit quality in rights offerings. Accounting & Finance. 60 (3), pp. 2007-2037. https://doi.org/10.1111/acfi.12429

TitleThe impact of audit quality in rights offerings
TypeJournal article
AuthorsBalachandran, B., Faff, R., Nguyen, L.H.G. and Puwanenthiren, P.
Abstract

Using audit quality as our core focus, we take a fresh look at the tradability and standby status in rights offerings, and the market reaction during the subscription period in the US market. We find that firms with high audit quality are more likely to choose tradable or full standby rights issues. We also find that the subscription period price reaction is positively related to audit quality and negatively related to issue price discount. These results demonstrate an important role played by the choice of auditors in the design of rights offerings, particularly in mitigating the negative price reaction during the subscription period.

JournalAccounting & Finance
Journal citation60 (3), pp. 2007-2037
ISSN0810-5391
Year2020
PublisherWiley
Digital Object Identifier (DOI)https://doi.org/10.1111/acfi.12429
Publication dates
Published online28 Dec 2018
Published in printSep 2020

Related outputs

Country uncertainty, power distance, and payment methods in acquisitions
Dang, M., Hoang, Viet Anh, Jones, Edward, Henry, Darren, Le, Phuong Uyen and Puwanenthiren, Premkanth 2021. Country uncertainty, power distance, and payment methods in acquisitions. The European Journal of Finance. Advanced online publication. https://doi.org/10.1080/1351847x.2021.1971731

Do family firms pay less for external funding?
Ali, M., Miglani, S., Dang, M., Puwanenthiren, P. and Mieszko, M. 2021. Do family firms pay less for external funding? Australian Journal of Management. Advanced online publication. https://doi.org/10.1177/03128962211018241

Policy uncertainty and seasoned equity offerings methods
Dang, M., Puwanenthiren, P., Thai, H., Mazur, M., Jones, E. and Xuan Vinh, V. 2021. Policy uncertainty and seasoned equity offerings methods. International Review of Financial Analysis. 77 101830. https://doi.org/10.1016/j.irfa.2021.101830

Global Policy Uncertainty and Cross-Border Acquisitions
Dang, M., Nguy, N.V., Mazuren, M., Puwanenthiren, P. and Nguyen, N.T. 2021. Global Policy Uncertainty and Cross-Border Acquisitions. The Quarterly Review of Economics and Finance. 80, pp. 224-235. https://doi.org/10.1016/j.qref.2021.01.020

Does Managerial ability matter for the choice of Seasoned Equity offerings?
Puwanenthiren, P., Dang, M., Henry, D., Puwanenthiren, P. and Al Mamun, M. 2019. Does Managerial ability matter for the choice of Seasoned Equity offerings? North American Journal of Economics and Finance. 47, pp. 442-460. https://doi.org/10.1016/j.najef.2018.06.002

Permalink - https://westminsterresearch.westminster.ac.uk/item/qx729/the-impact-of-audit-quality-in-rights-offerings


Share this
Tweet
Email

Usage statistics

29 total views
0 total downloads
0 views this month
0 downloads this month
These values are for the period from September 2nd 2018, when this repository was created

Export as