Can small naïve investors infer information from equity offerings ? : evidence from the Mena Region

Dissertant

al-Bunamani, Asma

Thesis advisor

Faruq, Umar

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2010

English Abstract

This paper explores the information content in equity offerings across nine countries in the MENA region.

It distinguishes between five aspects of equity offerings, i.e.

the nature of offering (i.e.

IPO Vs.

SEO), the type of the offering (i.e.

Rights, Placements, and Offer for Sale), the size of issue (i.e.

Large issue Vs.

Small issue), the industry of issuer (i.e.

Financial issuer Vs.

Non-Financial issuer), and the type of the underwriter (i.e.

Foreign Vs.

Local).

We believe that each of these aspects contains different amount of information.

Documenting information content of these aspects of equity offering may provide an additional source of reliable information for small/naïve investors in emerging markets.

Our results show that, on average, Offer for Sale outperforms the Rights offering and the Placement offerings.

Contrary to our expectations, our results also show that issues underwritten by Foreign underwriters are followed by higher abnormal returns relative to those underwritten by Local underwriters.

In addition, we also report insignificant information content in the nature of offering and in the size of the issue.

Main Subjects

Financial and Accounting Sciences

Topics

• Stockholders
• Stocks
• Middle East

No. of Pages

34

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-626757