Journal of Financial Economics Vol. 99 No. 2 2011
Frequent issuers’ influence on long-run post-issuance returns
Abstract
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.
- DOI
- 10.1016/j.jfineco.2010.09.009
- Volume
- 99
- Issue
- 2
- Pages
- 349-364
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref