Equity issues and offering dilution
This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity offerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negativ...
Gespeichert in:
| Veröffentlicht in: | Journal of financial economics 1986, Vol.15 (1), p.61-89 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 89 |
|---|---|
| container_issue | 1 |
| container_start_page | 61 |
| container_title | Journal of financial economics |
| container_volume | 15 |
| creator | Asquith, Paul Mullins, David W. |
| description | This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity offerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negatively related to the size of the equity offering. The results appear not to be explained by changes in capital structure associated with the equity offerings. The findings are consistent both with the hypothesis that equity issues are viewed by investors as negative signals and with the hypothesis that there is a downward sloping demand for a firm's shares. |
| doi_str_mv | 10.1016/0304-405X(86)90050-4 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_231733398</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><els_id>0304405X86900504</els_id><sourcerecordid>1295919064</sourcerecordid><originalsourceid>FETCH-LOGICAL-c508t-3a666f8ddf6013d248f9b48f79ace182e03815b4315934723ca8455fddb444563</originalsourceid><addsrcrecordid>eNp9UE1LAzEQDaJgrf4DD4u96GE12XxschGk1C8KXhS8Dekm0ZR2t012C_33Zl3xpgN5MwzvvQwPoXOCrwkm4gZTzHKG-fulFFcKY45zdoBGRJYqL8qSHaLRL-UYncS4xKlKrkZoMtt2vt1nPsbOxkzXJmucs8HXH5nxq671TX2KjpxeRXv208fo7X72On3M5y8PT9O7eV5xLNucaiGEk8Y4gQk1BZNOLRKUSleWyMJiKglfMEq4oqwsaKUl49wZs2CMcUHH6GLw3YRmm65pYdl0oU5fQkFJSSlVMpEmf5FIobgiCguWWGxgVaGJMVgHm-DXOuyBYOgzgz4Q6AMBKeA7M-hlz4Ms2I2tfjXW2qXzddrsgGrCE-z7QSUp1b4foUi4SU8QkAo-23Uyux3MbMps522AWHlbV9b4YKsWTOP_v-YLt4mJLg</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1295919064</pqid></control><display><type>article</type><title>Equity issues and offering dilution</title><source>RePEc</source><source>Elsevier ScienceDirect Journals Complete</source><source>Periodicals Index Online</source><creator>Asquith, Paul ; Mullins, David W.</creator><creatorcontrib>Asquith, Paul ; Mullins, David W.</creatorcontrib><description>This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity offerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negatively related to the size of the equity offering. The results appear not to be explained by changes in capital structure associated with the equity offerings. The findings are consistent both with the hypothesis that equity issues are viewed by investors as negative signals and with the hypothesis that there is a downward sloping demand for a firm's shares.</description><identifier>ISSN: 0304-405X</identifier><identifier>EISSN: 1879-2774</identifier><identifier>DOI: 10.1016/0304-405X(86)90050-4</identifier><identifier>CODEN: JFECDT</identifier><language>eng</language><publisher>Amsterdam: Elsevier B.V</publisher><subject>Dilution ; Economic theory ; Equity ; Impacts ; Public utilities ; Securities analysis ; Securities markets ; Statistical data ; Stock offerings ; Stock prices ; Studies</subject><ispartof>Journal of financial economics, 1986, Vol.15 (1), p.61-89</ispartof><rights>1986</rights><rights>Copyright Elsevier Sequoia S.A. Jan/Feb 1986</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c508t-3a666f8ddf6013d248f9b48f79ace182e03815b4315934723ca8455fddb444563</citedby><cites>FETCH-LOGICAL-c508t-3a666f8ddf6013d248f9b48f79ace182e03815b4315934723ca8455fddb444563</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://dx.doi.org/10.1016/0304-405X(86)90050-4$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,780,784,3550,4008,4024,27869,27923,27924,27925,45995</link.rule.ids><backlink>$$Uhttp://econpapers.repec.org/article/eeejfinec/v_3a15_3ay_3a1986_3ai_3a1-2_3ap_3a61-89.htm$$DView record in RePEc$$Hfree_for_read</backlink></links><search><creatorcontrib>Asquith, Paul</creatorcontrib><creatorcontrib>Mullins, David W.</creatorcontrib><title>Equity issues and offering dilution</title><title>Journal of financial economics</title><description>This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity offerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negatively related to the size of the equity offering. The results appear not to be explained by changes in capital structure associated with the equity offerings. The findings are consistent both with the hypothesis that equity issues are viewed by investors as negative signals and with the hypothesis that there is a downward sloping demand for a firm's shares.</description><subject>Dilution</subject><subject>Economic theory</subject><subject>Equity</subject><subject>Impacts</subject><subject>Public utilities</subject><subject>Securities analysis</subject><subject>Securities markets</subject><subject>Statistical data</subject><subject>Stock offerings</subject><subject>Stock prices</subject><subject>Studies</subject><issn>0304-405X</issn><issn>1879-2774</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1986</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><sourceid>K30</sourceid><recordid>eNp9UE1LAzEQDaJgrf4DD4u96GE12XxschGk1C8KXhS8Dekm0ZR2t012C_33Zl3xpgN5MwzvvQwPoXOCrwkm4gZTzHKG-fulFFcKY45zdoBGRJYqL8qSHaLRL-UYncS4xKlKrkZoMtt2vt1nPsbOxkzXJmucs8HXH5nxq671TX2KjpxeRXv208fo7X72On3M5y8PT9O7eV5xLNucaiGEk8Y4gQk1BZNOLRKUSleWyMJiKglfMEq4oqwsaKUl49wZs2CMcUHH6GLw3YRmm65pYdl0oU5fQkFJSSlVMpEmf5FIobgiCguWWGxgVaGJMVgHm-DXOuyBYOgzgz4Q6AMBKeA7M-hlz4Ms2I2tfjXW2qXzddrsgGrCE-z7QSUp1b4foUi4SU8QkAo-23Uyux3MbMps522AWHlbV9b4YKsWTOP_v-YLt4mJLg</recordid><startdate>1986</startdate><enddate>1986</enddate><creator>Asquith, Paul</creator><creator>Mullins, David W.</creator><general>Elsevier B.V</general><general>Elsevier</general><general>North-Holland in collaboration with the Graduate School of Management, University of Rochester</general><general>Elsevier Sequoia S.A</general><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>GHEHK</scope><scope>JQCIK</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>1986</creationdate><title>Equity issues and offering dilution</title><author>Asquith, Paul ; Mullins, David W.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c508t-3a666f8ddf6013d248f9b48f79ace182e03815b4315934723ca8455fddb444563</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1986</creationdate><topic>Dilution</topic><topic>Economic theory</topic><topic>Equity</topic><topic>Impacts</topic><topic>Public utilities</topic><topic>Securities analysis</topic><topic>Securities markets</topic><topic>Statistical data</topic><topic>Stock offerings</topic><topic>Stock prices</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Asquith, Paul</creatorcontrib><creatorcontrib>Mullins, David W.</creatorcontrib><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>Periodicals Index Online Segment 08</collection><collection>Periodicals Index Online Segment 33</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of financial economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Asquith, Paul</au><au>Mullins, David W.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Equity issues and offering dilution</atitle><jtitle>Journal of financial economics</jtitle><date>1986</date><risdate>1986</risdate><volume>15</volume><issue>1</issue><spage>61</spage><epage>89</epage><pages>61-89</pages><issn>0304-405X</issn><eissn>1879-2774</eissn><coden>JFECDT</coden><abstract>This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity offerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negatively related to the size of the equity offering. The results appear not to be explained by changes in capital structure associated with the equity offerings. The findings are consistent both with the hypothesis that equity issues are viewed by investors as negative signals and with the hypothesis that there is a downward sloping demand for a firm's shares.</abstract><cop>Amsterdam</cop><pub>Elsevier B.V</pub><doi>10.1016/0304-405X(86)90050-4</doi><tpages>29</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 1986, Vol.15 (1), p.61-89 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_journals_231733398 |
| source | RePEc; Elsevier ScienceDirect Journals Complete; Periodicals Index Online |
| subjects | Dilution Economic theory Equity Impacts Public utilities Securities analysis Securities markets Statistical data Stock offerings Stock prices Studies |
| title | Equity issues and offering dilution |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-25T07%3A39%3A06IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Equity%20issues%20and%20offering%20dilution&rft.jtitle=Journal%20of%20financial%20economics&rft.au=Asquith,%20Paul&rft.date=1986&rft.volume=15&rft.issue=1&rft.spage=61&rft.epage=89&rft.pages=61-89&rft.issn=0304-405X&rft.eissn=1879-2774&rft.coden=JFECDT&rft_id=info:doi/10.1016/0304-405X(86)90050-4&rft_dat=%3Cproquest_cross%3E1295919064%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1295919064&rft_id=info:pmid/&rft_els_id=0304405X86900504&rfr_iscdi=true |