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 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 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 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 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 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 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 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 Essays on Initial Public Offering Underwriting written by Katrina Louise Ellis and published by . This book was released on 2000 with total page 196 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 Essays on Empirical Corporate Finance written by Li Zhang and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Dynamics of Firm Level Risk written by Felix Zeidler and published by GRIN Verlag. This book was released on 2011-03 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: Doctoral Thesis / Dissertation from the year 2008 in the subject Business economics - Investment and Finance, grade: summa cum laude, European Business School - International University Schlo Reichartshausen Oestrich-Winkel, language: English, abstract: My doctoral thesis has the objective of broadening our understanding regarding the risk dynamics in capital markets. All three essays provide new evidence on how corporate investment decisions affect firm risk and how the adjustment process of risk can be described. Overall, my research documents the importance of understanding the dynamics of risk. Researchers, investors, and bank supervisors should bear in mind that corporate investment decisions may significantly affect firm risk. The assumption that risk remains constant over time may lead to incorrect conclusions.
Download or read book Two Essays on Corporate Finance written by Jie Lian and published by . This book was released on 2010 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two essays on corporate finance. Essay one examines whether corporate governance affects firm performance after capital investments. I find that among firms with weak corporate governance, those with high abnormal capital investments have significantly lower stock performance than those with low abnormal capital investments. In addition, a significant portion of the difference in abnormal stock performance between the two subgroups occurs around earnings announcements. In contrast, the level of abnormal capital investments is not related to subsequent stock performance or earnings announcement returns at firms with strong corporate governance. These findings indicate that corporate governance structure enhances firm value by mitigating the over-investment problem. Essay two examines how insider trading activity prior to seasoned equity offerings (SEOs) is related to subsequent investment, operating, and financing decisions of the issuer. I find that SEO firms with more abnormal insider sales issue more seasoned equity, hold more cash and increase dividend payouts more. They also perform more poorly. Following the SEO, these firms also issue less equity and the effects of the SEO on their capital structures gradually reverses. These findings suggest that SEO firms with more abnormal insider sales are more likely to have overpriced stock, while those with less abnormal insider sales are more likely to have good investment opportunities. Insider trading activity prior to the SEO provides valuable information about the firm's incentives to issue seasoned equity and help to predict the real activities of the issuer following the SEO.
Download or read book Timing of Seasoned Equity Offerings written by Hong Qian and published by . This book was released on 2014 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a sample of 6,198 US firms that went public from 1975-2004, this paper documents that firms often return for a new round of equity issuance shortly after the preceding one. First SEOs following the IPO are more likely to be conducted at a faster speed than subsequent (follow-on) SEOs. Duration analysis shows that recent stock returns and future growth opportunities are important determinants of the timing of SEOs. First SEOs differ from follow-on SEOs in two aspects: (1) Growth opportunities correlated with the overall economic growth are more important for follow-on SEOs than for first SEOs. (2) First SEOs are more driven by the incentive to time the stock market, whereas follow-on SEOs are more driven by growth needs.
Download or read book Long Run Underperformance of Seasoned Equity Offerings written by Victor Soucik and published by . This book was released on 2000 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt:
