Frequent issuers' influence on long-run post-issuance returns
Prior studies conclude that firms' equity underperforms following many individual sorts of external financing. These conclusions naturally raise significant questions about market efficiency and/or about the techniques used to measure long-run "abnormal returns." Rather than concentrating on a single security type or issuance, we examine long-run performance following any and all sorts of security issuances. Initial financing events do not associate with underperformance; however, subsequent financings do. Our results suggest that negative post-issuance returns have nothing to do with the specific type of security issued, and everything to do with the number of types of securities issued.
Year of publication: |
2011
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Authors: | Billett, Matthew T. ; Flannery, Mark J. ; Garfinkel, Jon A. |
Published in: |
Journal of Financial Economics. - Elsevier, ISSN 0304-405X. - Vol. 99.2011, 2, p. 349-364
|
Publisher: |
Elsevier |
Subject: | Security issuance Long-run performance |
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