Frequent issuers' influence on long-run post-issuance returns
Matthew T. Billett,
Mark Flannery and
Jon A. Garfinkel
Journal of Financial Economics, 2011, vol. 99, issue 2, 349-364
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.
Keywords: Security; issuance; Long-run; performance (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:99:y:2011:i:2:p:349-364
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