Journal article
At-the-Market Offerings
Journal of financial and quantitative analysis, Vol.54(3), pp.1263-1283
06/01/2019
DOI: 10.1017/S0022109018000893
Abstract
We study at-the-market (ATM) equity offerings, which are direct share issuances sold in the secondary market that forgo underwriters and "dribble-out" shares over time rather than raising them all at once. Enabled in 2008, their use has increased dramatically, and in 2016, their incidence and total proceeds were, respectively, 63% and 26% of those for seasoned equity offerings (SEOs). Determinants of firms' choice between ATMs and SEOs are consistent with the costly certification hypothesis of Chemmanur and Fulghieri (1994). We also find that 65% of ATM proceeds are used to stockpile cash compared to 84% of SEO proceeds.
Details
- Title: Subtitle
- At-the-Market Offerings
- Creators
- Matthew T. Billett - Indiana UniversityIoannis Floros - University of Wisconsin–MilwaukeeJon A. Garfinkel - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of financial and quantitative analysis, Vol.54(3), pp.1263-1283
- Publisher
- Cambridge Univ Press
- DOI
- 10.1017/S0022109018000893
- ISSN
- 0022-1090
- eISSN
- 1756-6916
- Number of pages
- 21
- Language
- English
- Date published
- 06/01/2019
- Academic Unit
- Finance
- Record Identifier
- 9984380538802771
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