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Costs of raising equity capital by renounceable rights issues in Australia Warren, Katherine and Dimovski, William 2009, Costs of raising equity capital by renounceable rights issues in Australia, in Sixteenth annual conference multinational finance society : conference proceedings, Global Business Publications,, pp. 59-59. Title Costs of raising equity capital by renounceable rights issues in Australia Author(s) Warren, Katherine Dimovski, William Conference name Multinational Finance Society. Conference (16th : 2009 : Crete, Greece) Conference location Crete, Greece Conference dates 28 June - 1 July 2009 Title of proceedings Sixteenth annual conference multinational finance society : conference proceedings Publication date 2009 Start page 59 End page 59 Total pages 1 Publisher Global Business Publications Keyword(s) costs of raising capital rights issues equity capital Summary Rights issues remain a common method for raising equity capital in Australia for companies listed on me Australian Stock Exchange. This study investigates the capital raising costs of Anstralian renounceable equity rights issues from 2001 to 2006. Both direct and indirect costs are investigated and the explanatory power of potential influencing factors is analyzed. The total direct costs averaged nearly 4% of gross proceeds raised and the mean offer price was discounted around 17% from the current market price. Issue size, percentage underwritten, concentration of ownership and issuer risk significantly influence the percentage direct costs of the rights issue. The age of the issuer, the average historical volume of shares traded and the offer price appear to influence the percentage discount. Language eng Field of Research 150299 Banking, Finance and Investment not elsewhere classified Socio Economic Objective 900199 Financial Services not elsewhere classified HERDC Research category E3 Extract of paper HERDC collection year 2009 Copyright notice ©2009, Global Business Publications Persistent URL http://hdl.handle.net/10536/DRO/DU:30016847 Document type: Conference Paper Collection: School of Management and Marketing Related Links Link Description Connect to published version (restricted access) Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Thu, 06 Aug 2009, 14:54:22 EST Tue, 11 Aug 2009, 12:56:38 EST Tue, 11 Aug 2009, 12:57:47 EST Wed, 06 Jan 2010, 15:20:47 EST Fri, 08 Jan 2010, 09:31:21 EST Fri, 08 Jan 2010, 10:20:37 EST Fri, 08 Jan 2010, 10:21:30 EST Fri, 08 Jun 2012, 09:33:26 EST Filtered Full Access Statistics: 422 Abstract Views, 3 File Downloads  -  Detailed Statistics Created: Thu, 06 Aug 2009, 14:54:19 EST by Lee-Ann Stones

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