The timing and consequences of seasoned equity offerings: A regression discontinuity approach

• 成果类型: Article
• 署名作者: Dittmar, Amy; Duchin, Ran; Zhang, Shuran
• 署名单位: University of Michigan System; University of Michigan; University of Washington; University of Washington Seattle; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.04.017
• 发表日期: 2020
• 页码: 254-276
• 关键词: Anchoring; cash; Real effects; INVESTMENT; behavioral finance

摘要

The likelihood of seasoned equity offerings (SEOs) jumps discontinuously when the stock price equals the most recent equity offer price. Anchoring on the last offer price holds after considering executive turnovers, stock splits, earnings management, or dividend adjustments. Using a fuzzy regression discontinuity design around this cutoff, which exploits local randomness in stock prices, we investigate the consequences of anchoring in SEOs. We find significant increases in cash holdings and acquisitions of lower quality, with no real effects on investment or employment. Overall, we provide some of the cleanest estimates, to date, of the timing and causal effects of SEOs. (C) 2020 Elsevier B.V. All rights reserved.