Controlling shareholders and market timing in share issuance

• 成果类型: Article
• 署名作者: Larrain, Borja; Urzua, Francisco I.
• 署名单位: Pontificia Universidad Catolica de Chile; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.03.013
• 发表日期: 2013
• 页码: 661-681
• 关键词: Controlling shareholders; ISSUANCE; Market timing; OWNERSHIP

摘要

We examine market timing in the equity issuance of firms controlled by large shareholders using a hand-collected data set of controlling shareholders' ownership stakes in Chile between 1990 and 2009. When a firm issues shares, the controlling shareholder can either maintain or change his ownership stake depending on how many of the new shares he subscribes. Issuance predicts poor future returns and is preceded by high returns, but only when the controlling shareholder's stake is significantly reduced. Consistent with market timing, the results are stronger in the absence of institutional investors and in hot issuance markets. (c) 2013 Elsevier B.V. All rights reserved.