Rights offerings: a systematic literature review and research agenda

Purpose This study thoroughly reviews seminal and recent literature on rights offerings, spanning from 1986 to 2023. It aims to consolidate key findings, delineate research trajectories and identify prevalent gaps within the academic discourse. This synthesis is a critical foundation for guiding subsequent inquiries and advancing the scholarly understanding of rights offerings in accounting and finance. Design/methodology/approach This study uses bibliometric analysis to evaluate influential research on rights offerings published over the past four decades. The review methodically categorizes the literature into principal research streams by analyzing citation networks, publication patterns and thematic trends. This approach provides a robust framework for assessing the evolution of scholarly discussions and methodological advancements in the field. The systematic categorization and analysis ensure that findings are comprehensive and representative of the broader academic landscape, offering clear insights into the dynamics of rights offerings. Findings The review reveals three primary areas of focus within rights offerings literature: the strategic motivations behind their use, their impact on shareholder control and market liquidity, and the diverse market responses across different jurisdictions. Significant inconsistencies in theoretical explanations and empirical results are highlighted, particularly regarding the underwriting processes and the market’s reaction to announcements. The analysis underscores a persistent need for more recent and expansive datasets to refine existing models and hypotheses, suggesting that further empirical research could enhance understanding of these complex financial instruments. Originality/value This review uniquely consolidates fragmented insights on rights offerings, clarifying contentious issues and under-researched areas. It advances the discourse by identifying the critical need for updated research methodologies and broader empirical studies, particularly in non-traditional markets. By highlighting gaps such as the underexplored impact of legal and cultural contexts on rights offerings, this paper sets the stage for future scholarly investigations, potentially reshaping theoretical models and practical approaches in corporate finance.