Title

Share price reaction to security offerings by hospitality firms

Abstract

This study examines the share price reaction to security offering announcements by hospitality firms. Results indicate that a significant negative market reaction is triggered on average when firms announce new equity issues. However, no significant share price reaction occurs when firms announce new debt issues. Cross-sectional analyses of announcement period abnormal market returns indicate that the market's reaction to equity issuance announcements is more favorable or less unfavorable for larger firms. The impact of security offerings is important to investors, managers, creditors, and other stakeholders, as security offerings can have a significant impact on the value of the firm and on the firm's cost of capital. © THE COUNCIL ON HOTEL, RESTAURANT AND INSTITUTIONAL EDUCATION.

Publication Date

12-1-1998

Publication Title

Journal of Hospitality and Tourism Research

Volume

21

Issue

3

Number of Pages

31-42

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1177/109634809802100303

Socpus ID

79958787880 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/79958787880

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