Journal article
The capital supply channel in peer effects: The case of SEOs
Journal of banking & finance, Vol.149, 106807
04/2023
DOI: 10.1016/j.jbankfin.2023.106807
Abstract
We document a capital supply channel in peer effects, for the case of SEOs. Firms accelerate their SEOs – they have higher SEO hazards – when more of their peers conducted an SEO within the prior six months. The effect is stronger among older yet constrained firms than among younger yet unconstrained firms. It is also stronger after Russell index shocks that likely reduce indexer demand for a firm's equity. We document evidence of a potential underlying mechanism; information conveyed by underwriters that recently marketed SEOs of peers, thus reducing asymmetric information costs.
Details
- Title: Subtitle
- The capital supply channel in peer effects: The case of SEOs
- Creators
- Matthew T. Billett - Indiana UniversityJon A. Garfinkel - Tippie College of Business, University of Iowa, USAYi Jiang - Mihaylo College of Business & Economics, California State University at Fullerton, USA
- Resource Type
- Journal article
- Publication Details
- Journal of banking & finance, Vol.149, 106807
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.jbankfin.2023.106807
- ISSN
- 0378-4266
- eISSN
- 1872-6372
- Language
- English
- Date published
- 04/2023
- Academic Unit
- Finance
- Record Identifier
- 9984380548002771
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