Share issuance and cash savings

• 成果类型: Article
• 署名作者: McLean, R. David
• 署名单位: University of Alberta
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2010.10.006
• 发表日期: 2011
• 页码: 693-715
• 关键词: Share issuance; Cash savings; Precautionary motives; Market timing; Raising capital

摘要

Firms increasingly issue shares for the purpose of cash savings. During the 1970s, $1.00 of issuance resulted in $0.23 of cash savings; over the most recent decade, $1.00 of issuance resulted in $0.60 of cash savings. This increase is caused by increasing precautionary motives. Proxies for precautionary motives increase over the sample period, and firm-level increases in these proxies are associated with firm-level increases in share issuance-cash savings. Share issuance-cash savings are inversely related to issuance costs, suggesting that firms issue and save when costs are low, so as to avoid issuing when costs are high. This framework can also help explain patterns and trends in share issuance activity over time. Market timing does not explain these effects, as share issuance-cash savings are not related to post-issuance stock returns. (C) 2010 Elsevier B.V. All rights reserved.