This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Is There a Window of Opportunity for Seasoned Equity Issuance?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
 Bayless, Mark
Chaplinsky, Susan
Abstract

The aggregate volume of equity issues is used to search for periods when seasoned equity capital can be raised at favorable terms. The authors find that the price reaction to equity issue announcements in high equity issue volume periods is approximately 200 basis points lower on average than in low equity issue volume periods. The lower price reaction in hot markets is economically important and is independent of the macroeconomic characteristics of hot and cold markets. The evidence supports the existence of windows of opportunity for equity issues that result at least partially from reduced levels of asymmetric information. Copyright 1996 by American Finance Association.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0022-1082%28199603%2951%3A1%3C253%3AITAWOO%3E2.0.CO%3B2-S&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by American Finance Association in its journal Journal of Finance.

Volume (Year): 51 (1996)
Issue (Month): 1 (March)
Pages: 253-78
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jfinan:v:51:y:1996:i:1:p:253-78

Contact details of provider:
Web page: http://www.afajof.org/
More information through EDIRC

Order Information:
Web: http://www.afajof.org/membership/join.asp

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jean Helwege & Nellie Liang, 1996. "Initial public offerings in hot and cold markets," Finance and Economics Discussion Series 96-34, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. Cécile Carpentier & Jean-François L’Her & Jean-Marc Suret, 2008. "Does securities regulation constrain small business finance? An empirical analysis," Small Business Economics, Springer, vol. 31(4), pages 363-377, December. [Downloadable!] (restricted)
  3. Malcolm Baker & Jeremy C. Stein, 2002. "Market Liquidity as a Sentiment Indicator," NBER Working Papers 8816, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Josh Lerner & Alexander Tsai, 2000. "Do Equity Financing Cycles Matter? Evidence from Biotechnology Alliances," NBER Working Papers 7464, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Padma Kadiyala & Avanidhar Subrahmanyam, 2000. "International IPOs, Market Segmentation, and Investor Recognition," University of California at Los Angeles, Anderson Graduate School of Management 1078, Anderson Graduate School of Management, UCLA. [Downloadable!]
  6. Jean Helwege & Nellie Liang, 2003. "Initial public offerings in hot and cold markets," Finance and Economics Discussion Series 2003-04, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  7. B. M. Burton & D. M. Power, 2003. "Evidence on the determinants of equity issue method in the UK," Applied Financial Economics, Taylor and Francis Journals, vol. 13(2), pages 145-157, January. [Downloadable!] (restricted)
  8. Bharat A. Jain & Omesh Kini, 2006. "Industry clustering of initial public offerings," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1-20. [Downloadable!]
  9. Mark Bayless & Kelly Price & Margaret Monroe Smoller, 2005. "Firm characteristics, market conditions, and the pattern of performance after seasoned equity offers," Applied Financial Economics, Taylor and Francis Journals, vol. 15(9), pages 611-622, June. [Downloadable!] (restricted)
  10. Malcolm Baker & Jeremy C. Stein & Jeffrey Wurgler, 2002. "When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms," NBER Working Papers 8750, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Dutordoir, M. & Gucht, L. van de, 2006. "Why Do Western European Firms Issue Convertibles Instead of Straight Debt or Equity?," Research Paper ERS-2006-056-F&A Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  12. Marion Hutchinson, 2001. "A Contracting-Agency Analysis of the Association between Firm Risk, Incentives and Firm Performance: An Australian Perspective," Accounting, Finance, Financial Planning and Insurance Series 2001_05, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  13. Cécile Carpentier & Jean-François L'Her & Jean-Marc Suret, 2005. "The Costs of Issuing Private Versus Public Equity," CIRANO Working Papers 2005s-14, CIRANO. [Downloadable!]
  14. Wang, Jun & Zhang, Ge, 2003. "Heterogeneous beliefs and employee stock options," Working Papers 2003-14, University of New Orleans, Department of Economics and Finance. [Downloadable!]
  15. Pástor, Luboš & Veronesi, Pietro, 2003. "Stock Prices and IPO Waves," CEPR Discussion Papers 4002, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  16. Michelle Lowry & G. William Schwert, 2000. "IPO Market Cycles: Bubbles or Sequential Learning?," NBER Working Papers 7935, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Frank Lin & Gerard Gannon, 2007. "Private Placement and Share Price Reaction: Evidence from the Australian Biotechnology and Health Care Sector," Accounting, Finance, Financial Planning and Insurance Series 2007_05, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
Statistics
Access and download statistics

Did you know? You may want to explore EconPapers, which displays the same data as IDEAS in a different way.

This page was last updated on 2009-10-15.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.