Firms’ Choice of Seasoned Equity Issuance Method—Taking Private or Non-private Route
Anjali Tuli
Global Business Review, 2016, vol. 17, issue 2, 400-410
Abstract:
The choice of an issuance method for selling subsequent equity is indeed an important corporate financial decision. The recent popularity of private placements over traditional seasoned equity offering (SEO) methods motivates this review on the determinants of firms’ choice between ‘private’ and ‘non-private’ routes for follow-on equity financing. Empirical results are generally consistent with the theoretical propositions. The review suggests further empirical evidence and importance of dynamic models to extensively explain the choice of an equity floatation method by listed companies.
Keywords: Seasoned equity; private placement; public issue; rights offering (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:17:y:2016:i:2:p:400-410
DOI: 10.1177/0972150915619816
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