ISSUE SIZE CHOICE AND UNDERPRICING IN THRIFT MUTUAL-TO-STOCK CONVERSIONS

• 成果类型: Article
• 署名作者: MAKSIMOVIC, V; UNAL, H
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.2307/2329063
• 发表日期: 1993
• 页码: 1659-1692
• 关键词: initial public offerings; COMMON-STOCK; cash flow; COSTS; INFORMATION; reputation; decisions; banking; MARKET; tests

摘要

Issue size choice and underpricing in mutual-to-stock conversions of thrifts are explained as a function of growth opportunities, perquisite consumption, and proprietary information. We provide evidence that thrifts with greater growth opportunities choose larger issue size and experience higher after-market price appreciation. This finding persists when we allow for investors' inferences about managers' proprietary information. Variables that explain underpricing in typical initial public offerings are significant by themselves but lose significance when combined with the issue size choice variables. Managerial holdings and the offer price do not act as dissipative signals of value in thrift conversions.