Share Price Reaction to Security Offerings by Hospitality Firms

Journal of Hospitality and Tourism Research, Vol. 21, 1998

Posted: 2 Mar 1999

See all articles by Anthony K. Byrd

Anthony K. Byrd

University of Central Florida - College of Business Administration

Stephen F. Borde

University of Central Florida - College of Business Administration

Stanley M. Atkinson

University of Central Florida - College of Business Administration

Abstract

This study examines the market's reaction when hospitality firms announce the issuance of new debt and equity. Results indicate that equity issuance announcements elicit a negative reaction, but no significant reaction is observed with respect to new debt issues. A cross-sectional analysis indicates that announcements by larger firms are more favorably, or less unfavorably, received by the market. The implication is that announcements of new security issues can have a significant impact on firm value under certain conditions.

Note: This is a description of the paper and is not the actual abstract.

JEL Classification: G00, G10, G14, G30, G32

Suggested Citation

Byrd, Anthony K. and Borde, Stephen F. and Atkinson, Stanley M., Share Price Reaction to Security Offerings by Hospitality Firms. Journal of Hospitality and Tourism Research, Vol. 21, 1998, Available at SSRN: https://ssrn.com/abstract=150603

Anthony K. Byrd

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States
407-823-5715 (Phone)

Stephen F. Borde (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States
407-823-2977 (Phone)
407-823-6676 (Fax)

Stanley M. Atkinson

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Dept. of Finance
Orlando, FL 32816
United States

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