Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959583 | Journal of Financial Economics | 2012 | 27 Pages |
Abstract
One of the most prominent stylized facts in corporate finance is that equity issues tend to follow periods of high stock returns. We document that firms exhibit such timing behavior only in response to high returns that coincide with strong institutional investor demand. When not accompanied by institutional purchases, stock price increases have little impact on the likelihood of equity issuance. The results highlight the importance of market reception for the timing of equity issues.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Aydoğan Altı, Johan Sulaeman,