Return of Equity Issues in the Spanish Stock Market from the Investor’s Perspective, during the 1997-2012 Period

Is it profitable for an investor, from a risk-return perspective, to acquire a stake in a quoted company when a capital increase is announced? This paper analyses the return obtained from the investment in equity issues with cash contribution and pre-emptive rights, aimed at funding corporate activities: acquisitions, investments in new facilities and/or strengthening the balance sheet of the companies undertaking the equity issue. During the 16 years covered by the study, the results show a negative average excess risk-adjusted return of almost 5%, from the moment that the equity offer is announced until the completion of the preferential subscription period. To obtain this excess return, the difference between the nominal Internal Rate of Return (IRR) and the expected return, using the CAPM, is computed for each equity issue. The intention behind this method is to eliminate the effects of time and any other possible effect on the stock price during the period of the analysis.The results from this article are consistent with the Pecking Order theory for the Spanish Stock Market also six months after the preferential subscription period. However, there is a positive return after three months.

The citizens' urban extitutional processes in Madrid

Talking about participation is always taking into account economics, capitals and resources. Who can participate? How citizens can afford time and space resources to participate? We don¿t like to speak about participation rather than collective processes of empowerment. Connecting the personal and the social, a different analysis of the relations between the public sphere and the domestic space is needed. There is an emergent new collective realm based on networks opening and distributing domestic practices within the city. These processes are developed as extitucional informal processes around the house, revealing other forms of urban and citizen assemblages in Madrid. Studies on the urban citizen organization have not developed a system to explain the different modes and processes as a movement-rhizome formed around the housing. It is the purpose of this research to explain and track how they are formed, how they operate in the city, how the action enables trading and how other non econonomical capitals are at stake in this process. The article investigates the different modes in which the creation of citizen networks not come only from public space and squares but also from finantial negociations, banks, housing and bodies. House is not any more an individual, particular and intimate space. That is the main teaching that the Mortage citizens¿ platform show us in Madrid. The empowerment citizen initiative PaH and all the citizen initiatives around the access to housing perform another urbanism as an extitutional process. Madrid is also today a collective laboratory around the house.