AN EMPIRICAL-INVESTIGATION OF IPO RETURNS AND SUBSEQUENT EQUITY OFFERINGS

• 成果类型: Article
• 署名作者: JEGADEESH, N; WEINSTEIN, M; WELCH, I
• 署名单位: University of California System; University of California Los Angeles; University of Southern California
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(93)90016-5
• 发表日期: 1993
• 页码: 153-175
• 关键词: IPO underpricing; MARKET-FEEDBACK HYPOTHESIS; Seasoned equity offering; SIGNALING HYPOTHESIS

摘要

Several recent papers present signaling models in which firms underprice their initial public offerings of equity (IPOs) so that they can subsequently issue scasoned equity at more favorable prices. We test the implications of these models. We find a positive relation between IPO underpricing and the probability and size of subsequent seasoned offerings. Although these results are consistent with the implications of the signaling hypotheses, the economic significance appears weak. We conduct additional tests to evaluate other explanations for these findings and find the alternatives more compelling.