Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/34142
Title: The impact of capital offering on real estate developers and construction sector stock return in Hong Kong
Authors: Hui, ECM 
Wong, FKW 
Chiang, YH 
Keywords: Construction industry
Discounts
Hong Kong
Real estate
Stock markets
Issue Date: 2005
Publisher: Emerald Group Publishing Limited
Source: Property management, 2005, v. 23, no. 3, p. 204-216 How to cite?
Journal: Property management 
Abstract: Purpose - Numerous studies suggest that announcements of capital offerings cause abnormal price reaction in stock markets. However, despite extensive research, relevant studies on the property sector are still relatively scarce, especially in the case of Hong Kong. The determinants of the post-offering price effects, which vary across industries and regions, are yet to be identified. This paper aims to examine the abnormal stock return phenomenon of Hong Kong property developers and construction companies surrounding the announcement and offer dates of capital issuances.
Design/methodology/approach - It employs the event-study methodology and regression analysis to verify such effects.
Findings - The major findings are: on equity offering announcements, there is a significant negative price reaction; the pre-offering debt/equity ratio of a firm is significantly associated with the level of abnormal price reactions; and on debt offerings there is, to the contrary, a modest increase in stock prices.
Practical implications - This study has identified a set of determinants of the post-offering stock price effects.
Originality/value - It can be concluded that there is evidence of abnormal price effects over the announcement and offer dates of capital issuances with unique characteristics of the property and construction sectors in Hong Kong.
URI: http://hdl.handle.net/10397/34142
ISSN: 0263-7472
EISSN: 1758-731X
DOI: 10.1108/02637470510603547
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