Journal of Financial Economics Vol. 23 No. 1 1989
Equity ownership concentration and firm value
Abstract
In contrast to the negative average abnormal returns accompanying the announcement of a public offering of securities, the announcement of a private sale of equity is accompanied by a 4.5% average abnormal return. Cross-sectional analysis indicates that the change in firm value at the announcement of a private sale is strongly correlated with the resulting change in ownership concentration. This relation depends on the level ownership concentration after the sale and the purchaser's current or anticipated future relationship with the firm.
- DOI
- 10.1016/0304-405x(89)90003-2
- Volume
- 23
- Issue
- 1
- Pages
- 3-28
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib