The effects of equity issues on ownership structure and stock liquidity: A comparison of rights and public offerings

• 成果类型: Article
• 署名作者: Kothare, M
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(96)00892-6
• 发表日期: 1997
• 页码: 131-148
• 关键词: SEASONED EQUITY OFFERINGS; rights offerings; Ownership structure; Bid-ask spread; liquidity

摘要

[ find that proportionate bid-ask spreads increase after rights offerings of common stock, but decrease after public underwritten offerings. These changes are correlated with changes in the issuing firm's ownership structure. Public offerings cause greater dispersion in share ownership while rights offerings lead to more concentrated ownership. I argue that increased spreads represent a significant cost to issuing firms' shareholders, making rights offerings costlier than public underwritten offerings for actively traded firms.