Market reaction to SEO announcements in Norway : a study on "repair Market reaction to SEO announcements in Norway : a study on "repair offerings"

Abstract

This master thesis investigates the market reaction to the announcement of a type of seasoned equity offerings (SEOs) called “repair offerings”, at the Oslo Stock Exchange in the period 1996–2009. A “repair offering” is a rights offering issued subsequent to a private placement and announced simultaneously. This flotation method has been prefered by an increasing number of firms in Norway in recent years. We find that repair offerings are associated with negative abnormal returns for all our event windows, and that they tend to be issued at a substantial discount.