Bigelli, Marco; Mehrotra, Vikas; Morck, Randall; Yu, Wayne - In: Journal of Management and Governance 2 (1998) 4, pp. 297-309
Seasoned equity issues trigger share price declines, and this is usually interpreted as evidence of signalling. We find that seasoned equity issues also typically result in much lower managerial ownership in U.S. firms. Jensen and Meckling (1976) predict a stock price decline when managerial...
