Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Common Stock Price Effects of Security Issues Conditioned by Current Earnings and Dividend Announcements

Timothy A. Manuel, LeRoy D. Brooks and Frederick P. Schadler
The Journal of Business
Vol. 66, No. 4 (Oct., 1993), pp. 571-593
Stable URL: http://www.jstor.org/stable/2353187
Page Count: 23
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Common Stock Price Effects of Security Issues Conditioned by Current Earnings and Dividend Announcements
Preview not available

Abstract

The valuation effect of debt and equity issue announcements on stock price varies predictably with the timing of earnings and dividend reports. Issue announcements closely preceding current cash flow signals have more negative valuation effects. Straight debt announcements also have a significantly negative effect on stock price when the offer announcement closely precedes earnings and dividend releases. The evidence is consistent with a separating equilibrium where better performing firms signal superior value by announcing equity offers shortly after dividend announcements. Poorer performers appear to time equity offers just before dividend signals, which in turn are more likely to be negative.

Page Thumbnails

  • Thumbnail: Page 
571
    571
  • Thumbnail: Page 
572
    572
  • Thumbnail: Page 
573
    573
  • Thumbnail: Page 
574
    574
  • Thumbnail: Page 
575
    575
  • Thumbnail: Page 
576
    576
  • Thumbnail: Page 
577
    577
  • Thumbnail: Page 
578
    578
  • Thumbnail: Page 
579
    579
  • Thumbnail: Page 
580
    580
  • Thumbnail: Page 
581
    581
  • Thumbnail: Page 
582
    582
  • Thumbnail: Page 
583
    583
  • Thumbnail: Page 
584
    584
  • Thumbnail: Page 
585
    585
  • Thumbnail: Page 
586
    586
  • Thumbnail: Page 
587
    587
  • Thumbnail: Page 
588
    588
  • Thumbnail: Page 
589
    589
  • Thumbnail: Page 
590
    590
  • Thumbnail: Page 
591
    591
  • Thumbnail: Page 
592
    592
  • Thumbnail: Page 
593
    593