When do high stock returns trigger equity issues?

• 成果类型: Article
• 署名作者: Alti, Aydogan; Sulaeman, Johan
• 署名单位: University of Texas System; University of Texas Austin; Southern Methodist University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2011.08.007
• 发表日期: 2012
• 页码: 61-87
• 关键词: Market timing; Seasoned equity offerings; institutional investors

摘要

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. (C) 2011 Published by Elsevier B.V.