Do Firms Time Seasoned Equity Offerings Evidence From Seos Issued Shortly After Ipos
Download Do Firms Time Seasoned Equity Offerings Evidence From Seos Issued Shortly After Ipos full books in PDF, epub, and Kindle. Read online free Do Firms Time Seasoned Equity Offerings Evidence From Seos Issued Shortly After Ipos ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
| Author | : Yi Jiang |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
We examine whether firms take advantage of brief windows of opportunity to time seasoned equity offerings (SEOs) when their equity is substantially overvalued given managers' private information. We find that firms experiencing larger IPO underpricing, larger stock price run-ups after the IPO, and larger IPO offer size tend to return to the market with an SEO earlier than the others. Firms which issue SEOs quickly after an IPO underperform in comparison to their peers. The mean three-day abnormal return of firms issuing SEOs within six months of IPOs is 2.69% lower than that of firms issuing SEOs six months or more following their IPOs. Firms issuing SEOs shortly after their IPOs also exhibit worse long-run stock returns and operating performance. The results are most consistent with the hypothesis that managers with private information time SEOs in ways that benefit existing shareholders.
| Author | : Hong Qian |
| Publisher | : |
| Total Pages | : 32 |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
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.
| Author | : Wolfgang Bessler |
| Publisher | : |
| Total Pages | : 41 |
| Release | : 2002 |
| Genre | : |
| ISBN | : |
The objective of this study is to investigate the long-run performance of initial public offerings in Germany for the period from 1977 to 1995. Of particular interest is to examine whether underpricing and the timing of subsequent seasoned equity offerings may help to explain why some firms have substantial positive and others substantial negative long-run abnormal holding period returns after going public. We find significant empirical evidence that firms that raised additional funds after an IPO through a seasoned equity offering outperformed the market. There is a significant difference in returns to the firms that had no subsequent equity offering. A comparison of seasoned equity offerings of IPOs and of established firms suggests that the information asymmetry is more pronounced for IPO firms.
| Author | : Mario Levis |
| Publisher | : Edward Elgar Publishing |
| Total Pages | : 599 |
| Release | : 2013-11-29 |
| Genre | : Business & Economics |
| ISBN | : 1781955379 |
The chapters offer some important new insights into issues that will be of interest not only to the academic community but also to professionals involved in the preparation, structure and execution of such transactions, market regulators, and private a
| Author | : Kavita Wadhwa |
| Publisher | : |
| Total Pages | : 47 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
This paper uses market-to-book ratio decomposition to examine whether firms that issue equity through initial public offerings or seasoned equity offerings exploit mispricing because of investor enthusiasm or to finance growth opportunities. We find strong evidence that, on average, firms do not issue mispriced stocks to exploit investors but, rather, to finance their investment opportunities in the form of real assets, inventory, and capital expenses. Firms that issue overvalued stocks with the view to increase their cash holdings experience poor long-run performance. Overall, our results show that stock mispricing drives equity offerings through IPOs and SEOs. Nonetheless, high transparency and balanced regulation in the marketplace deter issuing firms from investing their proceeds in non-value-creating activities. This evidence is robust to alternative measures of valuation and long-run performance.
| Author | : Mark D. Walker |
| Publisher | : |
| Total Pages | : 34 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Using a sample of 438 firms that issued seasoned equity, we investigate the ex ante reasons stated by the firm for the use of capital, the actual ex post use of funds, and the market reaction to this information. We find that, regardless of the stated use of funds, firms increase capital expenditures and research and development following an SEO. In addition, firms increase their long term debt following an SEO, even when the stated reason for the capital is to pay down debt. The market reacts more favorably to the anticipated investment increases if the firm provides specific plans for the use of the soon-to-be-raised capital. The evidence is consistent with the view that agency issues are important factors in SEOs.
| Author | : Douglas Cumming |
| Publisher | : OUP USA |
| Total Pages | : 937 |
| Release | : 2012-03-22 |
| Genre | : Business & Economics |
| ISBN | : 0195391241 |
Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
| Author | : Maretno A. Harjoto |
| Publisher | : |
| Total Pages | : |
| Release | : 2003 |
| Genre | : |
| ISBN | : |
This study examines the reason behind the IPO firm's decision to conduct a primary seasoned equity offering (SEO). First, we develop a two-period model of blockholder incentives starting from the IPO stage. The model suggests that the blockholder has an incentive to conduct a SEO after the IPO when the firm is experiencing growth that was not anticipated at the IPO stage. Using a sample of IPO firms during 1992 to 1997, we find that IPO firms with higher unanticipated positive growth are more likely to conduct a SEO during four years after their IPOs. We find that the firm's unanticipated shock and growth positively affect the relative size of the firm's seasoned equity offering. We also find that the firm's risk measure reduces the probability of conducting a SEO and reduces the relative size of a SEO.
| Author | : Michel Dubois |
| Publisher | : |
| Total Pages | : 36 |
| Release | : 2000 |
| Genre | : |
| ISBN | : |
| Author | : Ross Geddes |
| Publisher | : Elsevier |
| Total Pages | : 273 |
| Release | : 2003-06-06 |
| Genre | : Business & Economics |
| ISBN | : 0080478786 |
An initial public offering (IPO) is one of the most significant events in corporate life. It follows months, even years of preparation. During the boom years of the late 1990s bull market, IPOs of growth companies captured the imagination and pocketbooks of investors like never before. This book goes behind the scenes to examine the process of an offering from the decision to go public to the procedures of a subsequent equity offering. The book is written from the perspective of an experienced investment banker describing the hows and whys of IPOs and subsequent equity issues. Each aspect of an IPO is illustrated with plenty of international examples pitched alongside relevant academic research to offer a combination of theoretical rigour and practical application. Topics covered are: - the decision to go public- legal and regulatory aspects of an offering; marketing and research- valuation and pricing- allocations of shares to investors - examination of fees and commissions* Global perpective: UK, European and US practices, regulations and examples, and case studies* First hand experience written by an IPO trader with academic rigour* Includes the changes in the market that resulted from 1998-2000 equity boom
