À繫¿¬±¸ Á¦ ±Ç È£ (2009³â 11¿ù)
Asian Review of Financial Research, Vol., No..
pp.702~720
pp.702~720
Do governments time their stock issues?
Seung-Doo Choi Professor, Department of Finance, Dongeui University, Busan, Korea
Jung Sun Shin Professor, School of Business, Ewha University, Seoul
Several signaling models predict that firms underprice their initial offerings of equity deeply so that they can subsequently issue seasoned equity at more favorable terms. We test the implications of those models. We find a positive relation between IPO underpricing and the possibility of and the size of subsequent seasoned equity offerings. These results tend to consistent with the implications of the signaling hypotheses. The probability and size of subsequent seasoned equity offerings are closely related to stake sold at the initial public offering and to the external corporate governance variables. Those result are in sharp contrast with the market-feedback hypothesis raised by Jegadeesh, Weinsein, and Welch (19893). Curiously, aftermarket performance is irrelevant to subsequent stock issue decisions.
Seung-Doo Choi
Jung Sun Shin
Several signaling models predict that firms underprice their initial offerings of equity deeply so that they can subsequently issue seasoned equity at more favorable terms. We test the implications of those models. We find a positive relation between IPO underpricing and the possibility of and the size of subsequent seasoned equity offerings. These results tend to consistent with the implications of the signaling hypotheses. The probability and size of subsequent seasoned equity offerings are closely related to stake sold at the initial public offering and to the external corporate governance variables. Those result are in sharp contrast with the market-feedback hypothesis raised by Jegadeesh, Weinsein, and Welch (19893). Curiously, aftermarket performance is irrelevant to subsequent stock issue decisions.
[ 07327 ] 67-8, Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Korea TEL. +82-2-2003-9921 FAX. +82-2-2003-9979 E-mail. office@korfin.org COPYRIGHT(C) SINCE 1987 KOREAN FINANCE ASSOCIATION. All rights reserved.