The effects of removing barriers to equity issuance

• 成果类型: Article
• 署名作者: Gustafson, Matthew T.; Iliev, Peter
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.03.008
• 发表日期: 2017
• 页码: 580-598
• 关键词: SEASONED EQUITY OFFERINGS; pipes; Follow-on offering; SEO Issuance costs; Shelf registrations

摘要

We study the consequences of a US deregulation allowing small firms to accelerate their public equity issuance. Post-deregulation, affected firms double their reliance on public equity and transition away from private investments in public equity compared to similar untreated firms. The net effect is a 5.7 percentage point or 49% increase in the annual probability of raising equity. This is accompanied by a reduction in equity issuance costs, an increase in investment, and a decrease in leverage. Our findings provide evidence that reducing equity issuance barriers benefits issuers even in highly developed markets. (C) 2017 Elsevier B.V. All rights reserved.