Are the Discounts in Seasoned Equity Offers Due to Inelastic Demand?

被引：10

作者：

Armitage, Seth ^{[1
]}

Dionysiou, Dionysia ^{[2
]}

Gonzalez, Angelica ^{[1
]}

机构：

[1] Univ Edinburgh, Sch Business, Edinburgh, Midlothian, Scotland

[2] Univ Stirling, Sch Management, Stirling FK9 4LA, Scotland

来源：

JOURNAL OF BUSINESS FINANCE & ACCOUNTING | 2014年 / 41卷 / 5-6期

关键词：

seasoned equity offer; discount; inelastic demand; open offer; placing; INVESTOR IDENTITY MATTER; PRIVATE PLACEMENTS; RIGHTS OFFERINGS; HEDGE FUNDS; RETURNS; LIQUIDITY; CHOICE; DETERMINANTS; INVESTMENTS; INFORMATION;

D O I：

10.1111/jbfa.12074

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper investigates the large and diverse discounts in UK open offers and placings. Large discounts are a substantial cost to shareholders who do not buy new shares. The existing literature mainly examines US firm-commitment offers and private placements. The institutional setting differs in the UK, in ways that make the theory of inelastic demand for shares more important as an explanation for discounts than in the US. The paper finds that inelastic demand, or illiquidity of the issuer's shares, and financial distress, are key determinants of the discount. We expect these results to apply to other stock markets.

引用

页码：743 / 772

页数：30

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