Download or read book Essays on the Motives and Costs of Seasoned Equity Offerings written by Ping Sun and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Seasoned Equity Offerings written by Huajing Hu and published by . This book was released on 2013 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays in Seasoned Equity Offerings written by Irena Hutton and published by . This book was released on 2006 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays on Seasoned Equity Offerings written by Yueh-Fang Ho and published by . This book was released on 2003 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Two Essays on the Intended Use of Proceeds of Seasoned Equity Offerings written by David E. Bray and published by . This book was released on 2010 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: ABSTRACT: The intended use of proceeds variable is a publicly available data source provided by issuing firms via the proxy statement filed with the Securities and Exchange Commission. The first essay of this dissertation finds that firms stating investment as the intended use of proceeds outperform their counterparts who are raising capital to repay debt obligations. The second essay provides evidence that institutional investors are no longer able to select the outperforming seasoned equity offerings after the passage of Regulation Fair Disclosure.
Download or read book Three Essays on the Long run Performance of Firms Issuing Seasoned Equity Offerings written by Pawel Tomasz Bilinski and published by . This book was released on 2008 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Two Essays in Seasoned Equity Offerings written by and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay one investigates registered insider sales as stated in the final prospectus filed with the Securities and Exchange Commission (SEC) to test managerial market timing ability during the Seasoned Equity Offering (SEO) process. Using a comprehensive sample of 1,051 SEOs between 1997 and 2005, the findings suggest that the initial market reaction and the long-run post-issue performance of issuers are negatively related to C-level executive insider sales, but unrelated to sales by non-executive insiders. Overall, the findings are consistent with the notion that executive insiders are aware of the mispricing in their firm's securities and successfully time their sales by participating in the secondary components of SEOs. The implication is that SEOs with C-level executive sales are overvalued relative to both SEOs without insider sales and SEOs with only non-executive insider sales. In the second essay, we compare shareholder wealth effects of dual-class and single-class Seasoned Equity Offerings (SEOs) between 1997 and 2005. While there is no difference in pre-issue stock performance or the initial market reaction to the SEO announcements, dual-class issuers significantly underperform single-class issuers in the post-issue years. The mean three-year underperformance of dual-class firms relative to single-class is a significant 28.93% (30.45%) in buy-and-hold raw (abnormal) stock returns, and robust to alternative model specifications. We document that this relative long-run stock underperformance is related to differences in the impacts of post-issue capital expenditures and acquisitions for dual and single-class issuers. Similarly, post-issue corporate cash holdings also contribute less to the shareholder wealth for dual-class firms.
Download or read book Price Impacts of Seasoned Equity Offerings in Distinct Market Segments written by Edward Frederic Straube and published by . This book was released on 1987 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Seasoned Equity Offerings and Their Impact on the Firm Value written by Pierre Jeanneret and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Seasoned Equity Offerings written by Raymond Cox and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital is constantly being raised in the market to fund firm's expansion, acquisitions, and other strategies. Equity financing for established corporations comes primarily from additions to retained earnings. However, selling new common stock is an option. The issuance of additional shares can be executed by a choice between a rights offering or an underwritten commitment. For firms that have the preemptive right the rights method is obligatory. The remainder of firms, that do not have the preemptive right in their by-laws, have complete liberty to select either of the two methods to raise equity money.
Download or read book The Impact of Cost of Equity on Seasoned Equity Offerings written by Weiqi Zhang and published by . This book was released on 2014 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an empirical link between the expected cost of equity and firms' Seasoned Equity Offerings activities, using a novel measure of forward-looking cost of equity. There is a negative impact of expected cost equity on SEO likelihood and amount of proceeds, exists on both market and firm level. Empirical evidence suggests that the negative SEO announcement effect and post-SEO long run return is more consistent with the investment opportunity explanation rather than market timing. Firms issuing SEOs when they have high forward-looking cost of equity experience more negative announcement reaction and followed by worse long run post-SEO performance. Consistently, when the cost of equity is higher, firms receive stronger negative reaction during their SEO announcement if they are distressed. These firms are also more likely to pay back their debt one year after the issuance.
Download or read book Seasoned Equity Offerings written by Ashok N. Korwar and published by . This book was released on 2007 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines common stock price adjustments to announcements of underwritten common stock offerings. On average, a negative stock price change is observed, which is larger for industrials than for public utilities. Combination primary-secondary stock offerings and dual stock-bond offerings exhibit similar negative announcement effects. Combination offerings involving decreases in management shareholdings exhibit significantly larger negative announcement effects. Cross sectional analysis of stock announcement returns indicates a positive relationship to firms' leverage changes, and a negative relationship to prior stock returns and (for industrials) to decreases in management shareholdings.
Download or read book Seasoned Equity Offerings and Their Impact on the Firm Value written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The literature about capital structure is very dense but this density does not lead to establish a clear relation between capital structure and firm value. The seminal work of Modigliani and Miller (1958) states that under perfect market conditions, the capital structure choices are irrelevant to the firm value. This proposition cannot hold when market frictions are introduced in the analysis. From a theoretical standpoint, two main streams of models can be distinguished. First, trade-off models examine the existence of an optimal repartition between debt and equity. They are based on the hypothesis that the cash flows cannot be fully and symmetrically returned to every investors' type because of bankruptcy costs, corporate and individual taxes and characteristics of the output market (level of competition, production techniques and product specificities). Under these circumstances, firms can gain value in managing their capital structure. The repartition between debt and equity is said to be optimal when it maximises the firm value. However, this relation remains difficult to test empirically. The second theoretical stream is based on the hypothesis that market frictions prevent individual investors and market intermediaries to re-design efficiently and costlessly any financial assets. Therefore, firms have an incentive to issue specific securities to minimise the market imperfections impact on their value. Information asymmetry, agency costs, timing, flotation methods and underwriter's certification become the main determinants of the capital structure choices and they are better suited to explain the impact of these choices on the firm value. Unfortunately, the empirical literature lacks to clearly relate explanatory variables to the theory they should refer to. The dissertation proposes two empirical studies that examine the relation between equity financing and firm value, one at the announcement of the equity offering, the other over a long-term horizon. One c.
Download or read book Two Essays on Shelf registered Corporate Equity Offerings written by Don M. Autore and published by . This book was released on 2006 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investigations Into the Underpricing of Seasoned Equity Offerings and the Cost of Equity written by Anh Đúc Ngô and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Seasoned Equity Offerings Investment Risk and Financial Constraints written by Cécile Carpentier and published by . This book was released on 2008 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We evidence that Canadian seasoned equity issuers post a significant pre-issue stock price run-up and a significant post-issue underperformance, even when controlling for an investment risk factor, as in Lyandres, Sun and Zhang (2008). Our results do not corroborate the investment/risk hypothesis; neither are our results in line with the timing hypothesis: Canadian issuers exhibit poor operating performance, are generally financially constrained or distressed, and not able to time the market. We propose that the observed pattern can be attributed to a conjunction of the positive effect of the slack in the financial constraint and irrational pricing. Our results confirm this proposition.
Download or read book Seasoned Equity Offerings written by Mark D. Walker and published by . This book was released on 2008 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a sample of 438 firms that issued seasoned equity, we investigate the ex ante reasons stated by the firm for the use of capital, the actual ex post use of funds, and the market reaction to this information. We find that, regardless of the stated use of funds, firms increase capital expenditures and research and development following an SEO. In addition, firms increase their long term debt following an SEO, even when the stated reason for the capital is to pay down debt. The market reacts more favorably to the anticipated investment increases if the firm provides specific plans for the use of the soon-to-be-raised capital. The evidence is consistent with the view that agency issues are important factors in SEOs.
