Long-run performance following private placements of equity

被引:258
作者
Hertzel, M [1 ]
Lemmon, M
Linck, JS
Rees, L
机构
[1] Arizona State Univ, Tempe, AZ 85287 USA
[2] Univ Utah, Salt Lake City, UT 84112 USA
[3] Univ Georgia, Athens, GA 30602 USA
[4] Texas A&M Univ, College Stn, TX 77843 USA
关键词
D O I
10.1111/1540-6261.00507
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Public firms that place equity privately experience positive announcements effects, with negative post-announcement stock-price performance. This finding is inconsistent with the underreaction hypothesis. Instead, it suggests that investors are overoptimistic about the prospects of firms issuing equity, regardless of the method of issuance. Further, in contrast to public offerings, private issues follow periods of relatively poor operating performance. Thus, investor overoptimism at the time of private issues is not due to the behavioral tendency to overweight recent experience at the expense of long-term averages.
引用
收藏
页码:2595 / 2617
页数:23
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