Are financial markets overly optimistic about the prospects of firms that issue equity? Evidence from voluntary versus involuntary equity issuances by banks

• 成果类型: Article
• 署名作者: Cornett, MM; Mehran, H; Tehranian, H
• 署名单位: Southern Illinois University System; Southern Illinois University; Northwestern University; Boston College
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00085
• 发表日期: 1998
• 页码: 2139-2159
• 关键词: OPERATING PERFORMANCE; stock returns; EMPIRICAL POWER; TEST STATISTICS; OFFERINGS; UNDERPERFORMANCE; specification; INFORMATION

摘要

This paper examines firm performance around announcements of common stock issues. We study the banking industry in which some stock issues are made voluntarily by managers, and other issues are involuntary. We find that hanks that voluntarily issue common stock experience a significant drop in the matched adjusted operating performance following the issue, a significant drop in benchmark firms' adjusted stock prices following the issue, and systematically negative market reactions to post-issue quarterly earnings announcements. Banks that issue common stock involuntarily experience values for these measures that are not significantly different from those of the benchmark firm(s).