Long-run performance following private placements of equity

• 成果类型: Article
• 署名作者: Hertzel, M; Lemmon, M; Linck, JS; Rees, L
• 署名单位: Arizona State University; Arizona State University-Tempe; Utah System of Higher Education; University of Utah; University System of Georgia; University of Georgia; Texas A&M University System; Texas A&M University College Station
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/1540-6261.00507
• 发表日期: 2002
• 页码: 2595-2617
• 关键词: OPERATING PERFORMANCE; SHARE REPURCHASES; PRICE PERFORMANCE; EMPIRICAL POWER; TEST STATISTICS; stock returns; OFFERINGS; specification; underreaction; decisions

摘要

Public firms that place equity privately experience positive announcements effects, with negative post-announcement stock-price performance. This finding is inconsistent with the underreaction hypothesis. Instead, it suggests that investors are overoptimistic about the prospects of firms issuing equity, regardless of the method of issuance. Further, in contrast to public offerings, private issues follow periods of relatively poor operating performance. Thus, investor overoptimism at the time of private issues is not due to the behavioral tendency to overweight recent experience at the expense of long-term averages.