Equity Issues and Offering Dilution

  title={Equity Issues and Offering Dilution},
  author={Paul Asquith and David W Mullins},
This study investigates the effect on stock prices of seasoned equity offerings. The results demonstrate that the announcement of equity otlerings reduces stock prices significantly. For industrial issues, regression results indicate that announcement day price reduction is significantly and negatively related to the size of the equity offering. The results appear not to be explained by changes in capital structure associated with the equity offerings. The findings are consistent both with the… CONTINUE READING
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