A quantitative analysis of rights offerings on the Swedish market

Sammanfattning: The main goal of this thesis is to examine the share price effects of conducting seasoned equity offerings. Is the information asymmetry still the main explanation of the abnormal returns around the announcement day of SEOs? Do the firms experience long-term negative returns? The results are similar to previous study. It appears that firms announcing SEOs do experience negative abnormal returns and also perform poorer than the market in the post-event period. The results direct that information asymmetry is a potent explanation of the abnormal returns.