DETERMINANTS OF PRICE RESPONSE TO CANADIAN BOUGHT DEALS AND MARKETED UNDERWRITTEN EQUITY OFFERS: EVIDENCE BEFORE AND AFTER THE CANADIAN SOX

Arturo Rubalcava

The International Journal of Business and Finance Research, 2021, vol. 15, issue 1, 19-32

Abstract: This paper examines determinants of price response to announcing Canadian bought deals and marketed underwritten equity offers. It includes periods before and after the passage of Canadian SOX. This is a critical government law equivalent to the U.S. Sarbanes-Oxley Act. Both laws have had important effect on changes in governance and compliance for public companies. Bought deals and marketed underwritten offers are two standard methods of issuing equity by publicly traded firms. Did the Canadian law influence the determinants of price response for both underwriting methods? From fifteen different determinants, this study shows trading shares volume is the only common determinant for bought deals for the pre- and post-Canadian SOX periods. Mostly, for shares listed on the Toronto Stock exchange (and not cross-listed in the U.S.). Marketed underwritten offers do not show consistent determinants for the pre- and post-Canadian SOX periods. Also, none of the expected determinants are significant during the post-Canadian SOX period for marketed underwritten offers. In essence, the Canadian law had a different effect on expected determinants for bought deals and marketed underwritten offers, respectively.

Keywords: Deals; Marketed Underwritten Offers; Canadian SOX; Sarbanes- Oxley; Seasoned Equity Offerings; Cross-Listed (search for similar items in EconPapers)
JEL-codes: G24 G32 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v15n1-2021/IJBFR-V15N1-2021-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:ijbfre:v:15:y:2021:i:1:p:19-32

Access Statistics for this article

The International Journal of Business and Finance Research is currently edited by Terrance Jalbert

More articles in The International Journal of Business and Finance Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).