Cross-Country Variability in Cost of Raising Equity: Evidence from Seasoned Equity Offerings

被引：0
|
作者：
Gupta, Manu [1 ]
Prakash, Puneet [2 ]
Rangan, Nanda K. [1 ]
机构：
[1] Virginia Commonwealth Univ, Finance Insurance & Real Estate, 301 W Main St, Richmond, VA 23059 USA
[2] Missouri State Univ, Finance & Gen Business, Springfield, MO USA
来源：
INTERNATIONAL REVIEW OF FINANCE | 2019年 / 19卷 / 04期
关键词：
INITIAL PUBLIC OFFERINGS; INVESTMENT BANK REPUTATION; LITIGATION RISK; CORPORATE GOVERNANCE; SECURITIES; PRICE; FIRM; EXPROPRIATION; DETERMINANTS; CREDIBILITY;
D O I：
10.1111/irfi.12201
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine how county-level governance affects the cost of raising equity. Using data on seasoned equity offerings, we find that the underwriting spread is determined by the litigation risk of issue certifiers, and offer underpricing is largely determined by the investment risk of the equity issue. Underwriting spread increases with enhanced legal enforcement, offsetting the reduction in underpricing associated with strong legal enforcement. Our study offers insight into the effect of legal enforcement and regulatory policy on the cost of raising equity.
引用
收藏
页码：821 / 850
页数：30
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