A Test Of Semi-Strong Form Market Efficiency: Effects Of Seasoned Equity Offering On Stock Prices In Hose In 2010
HỒ VIẾT TIẾN & ĐINH THỊ THU HÀ
Studying effects of seasoned equity offering on stock prices is one of the trends in testing the semi-strong form of the efficient market hypothesis. Researches worldwide have produced remarkable results but no research on this aspect in Vietnam is found. This paper presents results of a pilot research in HCMC stock market in 2010: issues of seasoned equity on the HoSE make the stock prices fall drastically two-four days before the ex-rights (XR) day, especially the issue of subscription rights. The prices also fall remarkably within two or three days after the XR day, especially in case of issue of shares as payments for dividends or bonuses. Moreover, the stock prices rose strongly on the XR day for most fields, except for realty and agricultural businesses. After the issues, number of stocks enjoying lower degrees of risk is equal to the number of stocks facing higher degrees of risk.