The Demise of the Rights Issue

• 成果类型: Article
• 署名作者: Hansen, Robert S.
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/1.3.289
• 发表日期: 1988
• 页码: 289
• 关键词: SEASONED EQUITY OFFERINGS; capital structure; security prices; INFORMATION; COSTS; RESOLUTION; impacts; OPTION; MARKET

摘要

This article suggests that the lack of use of rights offerings in the United States, a phenomenon referred to as the equity underwriting paradox, can be explained by transaction-cost conditions. A sample of underwritten rights offerings provides support for the explanation. Firms making underwritten rights offerings paid lower underwriter fees but incurred significantly larger price drops just prior to the offering than did firms making underwritten public offerings. Further analysis reveals that the underwritten-rights-offering price concessions are a form of transaction cost that is not found in underwritten public offerings.