Discounting and Clustering in Seasoned Equity Offering Prices

Journal of Financial and Quantitative Analysis - Tập 39 Số 1 - Trang 1-23 - 2004
Simona Mola1, Tim Loughran2
1* [email protected], Bocconi University and Smeal College of Business Administration, Pennsylvania State University, University Park, PA 16802
2* [email protected], Men-doza College of Business, University of Notre Dame, Notre Dame, IN 46556-5646.

Tóm tắt

AbstractAn analysis of 4,814 SEOs during 1986–1999 indicates that the average offering ofnew shares is priced at a discount of 3% from the closing price on the day before the issue. Discounts have risen steadily over time, sharply increasing the indirect costs of issuing seasoned equity. There is evidence of increased clustering of offer prices at integers, and of greater importance in the analyst coverage provided by underwriters. Adjusting for other factors, we find that issues with integer offer prices, and underwriters with highly regarded analysts, are increasingly associated with larger discounts. The rise in discounts is consistent with an increased ability of investment bankers to extract rents from issuing firms.

Từ khóa


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Thông tin
Thông tin xuất bản

Journal of Financial and Quantitative Analysis

Tập 39 Số 1

1-23

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