Download or read book Three Essays in Equity Offerings and Related Issues written by Gemma Lee and published by . This book was released on 2006 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation consists of three chapters. My first chapter examines the degree of earnings management by IPO issuers and further investigates which financial institutions participating in the IPO process play a significant role in discouraging earnings manipulation. I employ a propensity score matching technique to improve on the existing approach of measuring earnings management, and also to control for potential endogeniety. After controlling for endogeniety in these two variables, the analysis shows that underwriters, but not venture capitalists are associated with a significant decrease in earnings management.
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 Underwritten Equity Offerings written by Kang Heum Yon and published by . This book was released on 1990 with total page 238 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 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 Three Essays on Corporate Governance written by Robert Scott Roark and published by . This book was released on 2011 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on New Equity Offerings in Canada written by Ian Rakita and published by . This book was released on 1999 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Through four essays, this thesis investigates different aspects of new issues of common equity in Canada. The first three essays consider initial public offerings (IPOs) and the fourth essay examines seasoned equity offerings (SEOs). The short-run intraday behaviour of Toronto Stock Exchange (ME) IPOs are examined first. Initial trading volume and number of trades for underpriced (overpriced) issues is unusually high (low) indicating that informed investors are active (inactive). Liquidity is consistently lower for overpriced issues. The typical investor Will probably not earn positive returns from IPO investment since median returns are consistently zero over the short-run. Amortized spreads are large and are driven primarily by unusually large share turnover at the start of secondary market trading. A four-moment market model indicates that the shape of the distribution of returns is important in explaining IPO returns. The overallotment option (OAO) gives underwriters the right to acquire additional shares from the firm at the offer price (less fees). It has been suggested that one use of the OAO is to stabilize price. Several aspects of stabilization in the new issue market in Canada are examined in order to establish its presence and to determine the role played by the OAO. Although there are indications that prices are being stabilized at the start of secondary market trading, the OAO does not seem to have a clear impact in terms of supporting prices. On the other hand, the OAO does have a positive effect on underwriter fees which implies that the reluctance of Canadian issuing firms to grant OAOs may be justified. Next a sample of underwriter fees for TSE listed common equity IPOs is examined. Mean fees for Canadian IPOs are less than one percent below fees charged by U.S. underwriters over a similar period of time. There is some apparent clustering of fees at 6% for medium sized IPOs, but different from U.S. IPOs, this fee concentration is cyclical rather than increasing over time. An analysis of fees charged by Canadian brokerage firms suggests that while fees are high relative to those charged by brokerages in countries other than the U.S., evidence in favour of collusion is weak. Efforts in Canada to reduce the country's dependence on natural resources are not directly observable in the capital markets with resource firms remaining prominent in the issuance of seasoned equity. Amortized spreads are much smaller for SEOs than IPOs since lower share turnover effectively distributes transactions costs over longer holding periods. Consistent with the literature, negative and positive announcement period abnormal returns are identified for non-resource public offerings and private placements. Pre-announcement abnormal returns and offering type are important in explaining announcement period abnormal returns.
Download or read book Three Essays on Capital Market with Incomplete and Asymmetric Information written by Chaoli Guo and published by Open Dissertation Press. This book was released on 2017-01-26 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Three Essays on Capital Market With Incomplete and Asymmetric Information" by Chaoli, Guo, 郭朝莉, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: This thesis includes one essay on incomplete information and two essays on the capital market implications of asymmetric information. The acquisition of information and its dissemination to all economic units are central activities in capital markets. Limits to information diffusion may exist when market participants have limited processing ability or when market structure causes information asymmetry to persist. Merton (1987) proposes a simple capital market equilibrium model with incomplete information, in which difference in a stock's investor recognition affects its cost of capital. Myers and Majluf (1984) lay out the theoretical foundation for the role of asymmetric information in corporate finance and its capital market implications. The first essay tests and offers support to Merton's (1987) theory. In the U.S. market, using the breadth of ownership among retail investors as a proxy for investor recognition, I show that a long-short portfolio based on the annual change of shareholder base earns a compounded annual abnormal return of 6.42% after controlling for the Fama-French three factors. These results are more pronounced among young, low visibility and high idiosyncratic volatility stocks. Moreover, I present evidence that the investor recognition effect can explain approximately 20% of the puzzling net equity issuance effect documented by Pontiff and Woodgate (2008). The second essay suggests a novel signaling mechanism in the framework of asymmetric information. When a firm's convertible debt is issued, it is not only determined by the fundamentals of the firm such as past stock performance, but also related to whether this performance is realized during the tenure of current CEO who decides the issues. I define the performance that the current CEO achieves in the firm ever since the CEO comes to the helm as CEO-specific performance. Higher CEOspecific performance leads to (1) a higher probability of convertible issues, and (2) a less negative abnormal stock return in response to the convertible issue announcement, controlling for other firm characteristics. These evidences indicate that CEO-specific performance serves as a credible information signal to influence the adverse selection costs between the firm and outside investors in convertible bond financing. The third essay explores the possibility of asymmetric information in explaining the pronounced share issue anomaly in the cross-sectional variations of stock returns, as documented by Pontiff and Woodgate (2008). A lot of equity share issue and repurchase actions are actively determined by the decision of corporate stakeholders, such as employees at the stock options exercises. As these stakeholders hold a large amount of private information about the firm, it is in their optimal decisions to try to time the exercise of their share purchase activity, but outside investors are likely to fail to interpret the information revealed from these actions. I present strong evidence that a negative relation between share issues and stock returns is affected to a greater extent when the information asymmetry problem is more severe. DOI: 10.5353/
Download or read book Essays Relating to Equity Offerings and Earnings Management written by Lakshmanan Shivakumar and published by . This book was released on 1996 with total page 348 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 Initial Public Offerings and Real Estate Investment Trusts written by Sandra F. Holsonback and published by . This book was released on 2003 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: Initial Public Offerings (IPOs) are financial vehicles whereby firms can raise capital through public markets. These vehicles increased in importance in the 1990's when financial institutions were reluctant to lend money, especially to young or unestablished firms. Private real estate companies, hampered by these tight credit markets, formed Real Estate Investment Trusts (REITs), a public entity. REIT IPOs trade on the same markets and are subject to the same SEC regulations as equity stocks, but the lack luster behavior of their initial stock offerings is opposite to large initial day returns exhibited by equity stocks. In proposing that underpricing is a strategy utilized by the firm and the underwriter, this study, comparing IPOs of four industries: retail, manufacturer of communication equipment, software development, and REITs, validates the theory of asymmetric information, whereby investors are compensated for risk through underpricing.
Download or read book Three Essays on Initial Public Offerings written by Chuntai Jin and published by . This book was released on 2014 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: IPO -- operating performance -- offering size -- analyst forecast -- valuations -- new capital.
Download or read book Three Essays in Monetary Theory written by Ludwig van den Hauwe and published by BoD – Books on Demand. This book was released on 2009 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays on Financial Innovation written by Peter Tufano and published by . This book was released on 1993 with total page 160 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 REIT Corporate Finance written by Zhonghua Wu and published by . This book was released on 2006 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
