Journal article
A Comparison of the Motivations for and the Information Content of Different Types of Equity Offerings
The Journal of business (Chicago, Ill.), Vol.77(3), pp.605-632
07/01/2004
DOI: 10.1086/386532
Abstract
We examine the choice of equity offering type and the accompanying information content using a sample of 4,708 equity offerings announced between 1980 and 1998. We find evidence that announcements of regular equity offerings involving primary shares convey unfavorable information about future operating performance, while announcements of regular offerings of secondary shares and shelf registrations, if anything, convey favorable information. Further analysis suggests that firms sell equity in regular offerings to take advantage of temporarily high equity values, while firms sell equity in rights offerings or file shelf registrations when their market value is low and their financial situation tight.
Details
- Title: Subtitle
- A Comparison of the Motivations for and the Information Content of Different Types of Equity Offerings
- Creators
- Randall A. HeronErik Lie - William & Mary
- Resource Type
- Journal article
- Publication Details
- The Journal of business (Chicago, Ill.), Vol.77(3), pp.605-632
- Publisher
- The University of Chicago Press
- DOI
- 10.1086/386532
- ISSN
- 0021-9398
- eISSN
- 1537-5374
- Language
- English
- Date published
- 07/01/2004
- Academic Unit
- Finance
- Record Identifier
- 9984380450402771
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