Seasoned Equity Offerings: Stock Market Liquidity and the Rights Offer Paradox

被引：13
|
作者：
Ginglinger, Edith [1 ]
Matsoukis, Laure [1 ]
Riva, Fabrice [2 ,3 ]
机构：
[1] Univ Paris 09, DRM, F-75775 Paris 16, France
[2] IAE Lille, Lille, France
[3] CNRS, LEM, UMR 8179, F-75700 Paris, France
来源：
JOURNAL OF BUSINESS FINANCE & ACCOUNTING | 2013年 / 40卷 / 1-2期
关键词：
seasoned equity offering; SEO; flotation method; flotation costs; rights issues; public offerings; liquidity; bid-ask spread; ADVERSE SELECTION; OWNERSHIP STRUCTURE; TRADING ACTIVITY; ISSUANCE; CHOICE; INFORMATION; SPREAD; ISSUES; FIRMS;
D O I：
10.1111/jbfa.12007
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper examines the impact of market liquidity on seasoned equity offerings (SEO) characteristics in France. We find that, besides blockholders' takeup, liquidity is an important determinant of SEO flotation method choice. We document higher direct equity offering flotation costs, but also improved stock market liquidity after public offerings and standby rights relative to uninsured rights. After controlling for endogeneity in the choice of SEO flotation method, we find that pure public offerings and standby rights are comparable in terms of direct costs and liquidity improvement. Our results provide new insights as to why firms choose public offerings despite apparently higher costs.
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页码：215 / 238
页数：24
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