Frequent issuers’ influence on long-run post-issuance returns

Abstract

Prior studies conclude that firms’ equity underperforms following many individual sorts of external financing. These conclusions naturally raise significant questions about market efficiency and/or about the techniques used to measure long-run ‘‘abnormal returns.’’ Rather than concentrating on a single security type or issuance, we examine long-run performance following any and all sorts of security issuances. Initial financing events do not associate with underperformance; however, subsequent financings do. Our results suggest that negative post-issuance returns have nothing to do with the specific type of security issued, and everything to do with the number of types of securities issued. & 2010 Elsevier B.V. All rights reserved.

Extracted Key Phrases

8 Figures and Tables

Cite this paper

@inproceedings{Billett2010FrequentII, title={Frequent issuers’ influence on long-run post-issuance returns}, author={Matthew T. Billett and Mark J. Flannery and Jon A. Garfinkel}, year={2010} }