Journal articles: 'Equity offering'

1

Asquith, Paul, and David W. Mullins. "Equity issues and offering dilution." Journal of Financial Economics 15, no. 1-2 (January 1986): 61–89. http://dx.doi.org/10.1016/0304-405x(86)90050-4.

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Costa, Vilma Sousa Ismael Da, and Márcio André Veras Machado. "A influência do Market Timing e do estágio do ciclo de vida na realização de oferta pública de ações." Revista de Administração da UFSM 9, no. 3 (October 2, 2016): 520–36. http://dx.doi.org/10.5902/198346599853.

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This study aimed to determine, by logistic regression, if the occurrence of market timing and the lifecycle stage influence the decision to carry out an equity public offering in Brazilian companies. The analysis focuses on whether the probability of a company making an equity public offering is negatively related to the BM index, future returns, number of years of life and size. The sample was composed by non-financial companies with stock traded on BMFBovespa. As main results, can be concluded that there is a inverse relationship between probability of equity public offering and the lifecycle stage. On the other hand, there were no evidence confirming the relationship between the BM index and the decision to carry out a equity public offering, as required by the market timing theory. Finally, no evidence was found that companies take advantage of market opportunities to issue stocks. However, evidence was found that the majority of equity public offerings was carried out by young and small companies.

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윤평식 and Lim, Byungkwon. "The Effect of Short Sales around Seasoned Equity Offerings on the Offering Price." KOREAN JOURNAL OF FINANCIAL MANAGEMENT 35, no. 2 (June 2018): 1–25. http://dx.doi.org/10.22510/kjofm.2018.35.2.001.

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Opare, Solomon, Muhammad Nurul Houqe, and Tony van Zijl. "IFRS adoption and seasoned equity offering underperformance." Pacific-Basin Finance Journal 61 (June 2020): 101289. http://dx.doi.org/10.1016/j.pacfin.2020.101289.

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5

TULLO, ALEX. "Huntsman To Go Public With Equity Offering." Chemical & Engineering News 82, no. 38 (September 20, 2004): 12. http://dx.doi.org/10.1021/cen-v082n038.p012a.

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6

Bobenhausen, Nils-Christian, and Astrid Juliane Salzmann. "Discount, transparency and announcements effects of equity rights offerings: international evidence." Journal of Business Economics 91, no. 5 (January 8, 2021): 733–58. http://dx.doi.org/10.1007/s11573-020-01023-8.

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AbstractEquity rights offerings and their respective announcement effects have been studied extensively in the literature. Our study expands upon these studies and focuses on those announcement effects and the relation between the discount of an equity rights offering and the announcement effect. Previous theoretical and empirical analyses show that firms can signal their quality via the discount in an equity rights offering and demonstrate a negative relation between the discount and the announcement effect. We argue that this link is only relevant in environments where signalling is possible and necessary. These are financial markets with a particularly low level of capital market transparency, i.e. high information asymmetry. We calculate announcement effects for an international sample of equity rights offerings and show that the negative effect of the discount on announcement effects can only be observed in environments with a low capital market transparency. Hence, our study estimates announcement effects across several different countries and is thus among the first to analyse signalling considerations for equity rights offerings in different transparency environments.

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Young Chung, Chune, Kangjin Ju, and Doojin Ryu. "Stock split, unseasoned equity offering, and firm value: evidence from the Korean stock market." Investment Management and Financial Innovations 13, no. 3 (August 23, 2016): 105–9. http://dx.doi.org/10.21511/imfi.13(3).2016.09.

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This study examines the extent to which announcements of stock splits and unseasoned equity offerings (capital increase without consideration) affect firm values in the Korean stock market. The authors find that, based on analyses of the cumulative abnormal return (CAR) around the announcement dates, CARs are significantly positive for both corporate events. This result suggests that both events are positive in relation to the firm’s value. The authors also examine whether the performance of firms that execute stock splits and/or unseasoned equity offerings differs from that of firms that do not, before and after their announcement dates; we do so by using the difference-in-difference test. The results indicate that a stock split is unrelated to improved firm performance following the announcement, and that an unseasoned equity offering can even have a negative impact on performance. Hence, the presence of stock splits and unseasoned equity offerings does not seem to support the signaling hypothesis, which predicts firms’ positive performance following an announcement

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8

Fargher, Neil L., Brian W. Mayhew, and Michael Wilkins. "The Pricing of Assurance Services in Secondary Equity Offerings." Journal of Accounting, Auditing & Finance 20, no. 3 (July 2005): 187–207. http://dx.doi.org/10.1177/0148558x0502000301.

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This paper examines the pricing of assurance services in secondary equity offerings (SEOs). Our empirical model extends initial public offering (IPO) fee specifications to include variables that are unique to, or more relevant for, secondary offerings. We document an inverse relationship between SEO fees and a client's ability to delay its secondary offering, suggesting that auditors do not charge as much for SEOs made by relatively mature firms. The relationship reverses, however, when the client is required to use more comprehensive types of filings (i.e., when assurance effort is higher). We also show that fees are higher when the SEO comes to market during the client's annual audit period. This finding is consistent with the shifting of year-end audit fees to SEO engagements in an effort to boost earnings for both clients and auditors (at the expense of shareholders). We cannot, however, unambiguously conclude that fee shifting exists, as the observed fee premium could be explained by other factors.

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Furnari, S. L. "Trough Equity Crowdfunding Evolution and Involution: Initial Coin Offering and Initial Exchange Offering." Lex Russica, no. 1 (January 19, 2021): 101–17. http://dx.doi.org/10.17803/1729-5920.2021.170.1.101-117.

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This article analyzes two of the last innovative financing instruments of the crowdfunding family: Initial Coin Offering (ICO) and Initial Exchange Offering (IEO). Having both a potential financial nature, they will be addressed as «sons» of Equity-based Crowdfunding (EBCF). The main scope of this paper is to show opportunities and dangers of ICO and IEO through a comparison with EBCF. Indeed, at the end of the analysis it will be possible to understand if ICO and IEO can be considered as positive evolution of EBCF or — at least one of them — can be considered so dangerous to appear as a sort of «involution».In order to answer our question, the discussion firstly focuses on EBCF, the innovative financing instrument being one of the most important figures of the «crowdfunding family». Its importance lies in its financial nature that makes this instrument different from the other models (meaning the donation, reward and lending). Participating in an EBCF-campaign, indeed, lets participants become shareholders of the company they are giving money to. So, the main pros and cons of the participation in an EBCF campaign will be disclosed. In particular, granting easier access to capitals together with the possibility to benefit from the so-called «wisdom of the crowd» allowed EBCF to become one of the most innovative financing tools of our age. However, these advantages need to be mitigated with the main risks occurring during a crowdfunding campaign. These are: moral hazard and frauds, arbitrary exclusion during pre-emptive screening by platform and, last but not least, illiquidity.Therefore, the discussion moves to the technological advanced new entry of the crowdfunding family, meaning ICO and IEO. In order to understand why ICO and IEO are so similar to EBCF, both the main characteristic of these instruments will be described. With reference to ICO, first of all this article provides a brief description of the technology that makes this innovative financing tool the advanced «son» of EBCF. Indeed, through the launch of an ICO, a company asks the crowd a precise amount of money in exchange of a «token»: an informatic instrument through which the participant may exercise also some financial rights towards the company. From this point of view, an ICO-campaign is very similar to an EBCF one, lying the main difference in the technological solutions used, the queen on those is blockchain. Furthermore, ICO characteristic will be outlined in order to disclose its functioning — meaning the relation with blockchain and smart contracts — and the different models of tokens.After that, also IEO will be described. IEO could be considered one of the last variants of ICO. The main difference, indeed, lies in the fact that IEO campaigns are not conducted in the website owned by the company but in a specific platform, that is a crypto-asset exchange.The exam of ICO and IEO potentialities (i.e. programmability, disintermediation and tokenization) will highlight how ICO and IEO may solve most of the mentioned EBCF cons. This will lead to the potential consideration of ICO and IEO as evolution of EBCF. However, also ICO and IEO cons will be highlighted (meaning lack of transparency, not clear regulatory regime and, for IEO in particular, dangerous proximity with investors and potential conflict of interest). From the comparison between ICO and IEO pros and cons it will be possible to discuss on if we are really in front of two evolution of EBCF or nearer to an «involution» of this instrument, considering regulatory solutions in order to avoid this second scenario.

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10

Mola, Simona, and Tim Loughran. "Discounting and Clustering in Seasoned Equity Offering Prices." Journal of Financial and Quantitative Analysis 39, no. 1 (March 2004): 1–23. http://dx.doi.org/10.1017/s0022109000003860.

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AbstractAn analysis of 4,814 SEOs during 1986–1999 indicates that the average offering ofnew shares is priced at a discount of 3% from the closing price on the day before the issue. Discounts have risen steadily over time, sharply increasing the indirect costs of issuing seasoned equity. There is evidence of increased clustering of offer prices at integers, and of greater importance in the analyst coverage provided by underwriters. Adjusting for other factors, we find that issues with integer offer prices, and underwriters with highly regarded analysts, are increasingly associated with larger discounts. The rise in discounts is consistent with an increased ability of investment bankers to extract rents from issuing firms.

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11

F. Brazel, Joseph, and Elizabeth Webb. "CEO compensation and the seasoned equity offering decision." Managerial and Decision Economics 27, no. 5 (2006): 363–78. http://dx.doi.org/10.1002/mde.1268.

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12

Liu, Chia-Ying, Shiu-Chen Huang, and Shieh-Liang Chen. "The Effects of Agency Costs and Insiders’ Shareholdings on Financing Choices." Asian Journal of Finance & Accounting 8, no. 1 (April 16, 2016): 127. http://dx.doi.org/10.5296/ajfa.v8i1.9288.

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This paper investigates the effects of debt agency cost and equity agency cost of current and prior periods on the financing choices of long-term debts, seasoned equity offering, and private equity financings. It also examines the effects of the shareholdings of insiders on the association between both debt and equity agency costs and the choice of financing methods. The findings show that both prior and current debt agency costs are positively related to seasoned equity offerings of current period, and both prior and current debt agency costs are positively related to private equity financing of current period regardless of whether the models consider the factor of insiders’ shareholdings. As for equity agency cost, the document indicate that both current and prior equity agency costs are negatively related to current seasoned equity offerings, however, only prior equity agency costs are negatively related to current seasoned equity offerings under considering shareholdings of insiders. Moreover, the shareholdings of insiders would affect the positive association between the corporate debt agency cost and seasoned equity offerings and the positive association between the corporate equity agency cost and debt financing.

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Vismara, Silvio. "Information Cascades among Investors in Equity Crowdfunding." Entrepreneurship Theory and Practice 42, no. 3 (January 23, 2018): 467–97. http://dx.doi.org/10.1111/etap.12261.

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Finance studies on information cascades, usually in an initial public offering setting, typically differentiate between institutional and retail investors, as this is the only information available to potential backers. Information available through equity crowdfunding platforms includes details on individual investors as they may disclose information about themselves by linking their profile to social networks or websites. Using a sample of 132 equity offerings on Crowdcube in 2014, we show that information cascades among individual investors play a crucial role in crowdfunding campaigns. Investors with a public profile increase the appeal of the offer among early investors, who in turn attract late investors.

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14

Mayasari, Triya, Yusuf ., and Agung Yulianto. "Pengaruh Return on Equity, Net Profit Margin dan Ukuran Perusahaan Terhadap underpricing." Jurnal Kajian Akuntansi 2, no. 1 (June 30, 2018): 41. http://dx.doi.org/10.33603/jka.v2i1.1271.

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Abstract One of the ways the company to develop its business, namely by means of expansion by making an Initial Public Offering (IPO). Interesting phenomenon at the time the company did an Initial Public Offering is the phenomenon of Underpricing. The phenomenon of underpricing is a phenomenon where the stock price is offered at the primary market is lower compared to the price of the stock when it was trading in the secondary market. The purpose of this study was to analyze the influence of Return On Equity (ROE), the Net Profit Margin (NPM) and the size of the company (Firm Size) of underpricing. The population in this research is the company that did the Initial Public Offering (IPO) in BEI 2013-2016 year. The selection of the sample in this study using a purposive sampling method and retrieved 54 samples of 82 companies who are doing an initial public offering in BEI 2013-2016 year. Methods of data analysis using multiple linear regression. The results of penenlitian showed that the Return On Equity (ROE) and the size of the company (Firm Size) effect on the IPO underpricing companies in Indonesia stock exchange. While the Net Profit Margin (NPM) has no effect on the company'S IPO underpricing on the Indonesia stock exchange.Keywords: Underpricing, Return On Equity, Net Profit Margin, Firm size Abstrak Salah satu cara perusahaan untuk mengembangkan usahanya yaitu dengan cara ekspansi dengan melakukan Initial Public Offering (IPO). Fenomena menarik pada saat perusahaan melakukan Initial Public Offering adalah fenomena Underpricing. Fenomena underpricing merupakan fenomena dimana harga saham yang ditawarkan pada pasar perdana lebih rendah dibandingkan dengan harga saham ketika diperdagangkan di pasar sekunder. Tujuan penelitian ini adalah menganalisis pengaruh Return On Equity (ROE), Net Profit Margin (NPM) dan Ukuran Perusahaan (Firm Size) terhadapunderpricing. Populasi dalam penelitian ini adalah perusahaan yang melakukanInitial Public Offering (IPO) di BEI tahun 2013-2016. Pemilihan sampel dalam penelitian ini menggunakan metode purposive sampling dan diperoleh 54 sampel perusahaan dari 82 perusahaan yang melakukan initial public offeringdi BEI tahun 2013-2016. Metodeanalisis data menggunakan regresi linear berganda. Hasil penenlitian menunjukkan bahwa Return On Equity (ROE) dan Ukuran Perusahaan (Firm Size)berpengaruh terhadap underpricing pada perusahaan yang IPO di Bursa Efek Indonesia. Sedangkan Net Profit Margin (NPM) tidak berpengaruh underpricing pada perusahaan yang IPO di Bursa Efek Indonesia.Kata kunci: Underpricing, Return On Equity, Net Profit Margin, Ukuran Perusahaan

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15

Hahn, Christopher, and Robert Wilkens. "ICO vs. IPO – Prospektrechtliche Anforderungen bei Equity Token Offerings." Zeitschrift für Bankrecht und Bankwirtschaft 31, no. 1 (February 12, 2019): 10–26. http://dx.doi.org/10.15375/zbb-2019-0104.

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Zusammenfassung Mit Initial Coin Offerings (ICOs) ist auf Basis der Blockchain-Technologie eine neuartige Form der Unternehmensfinanzierung entstanden, die das Potenzial hat, klassische VC-Investments in den Schatten zu stellen. Trotz der sprachlichen Ähnlichkeit haben ICOs meist wenig mit einem Börsengang (Initial Public Offering, IPO), zu tun. Mit den sog. Equity Token Offerings (ETOs) hat sich jedoch eine besondere ICO-Form herausgebildet, die zwar weniger in sprachlicher, dafür aber umso mehr in funktionaler Hinsicht mit einem klassischen IPO vergleichbar ist und nun auch in Deutschland in den Startlöchern steht. ETO-Initiatoren treibt dabei vor allem. die Frage nach einer möglichen IPO-ähnlichen Prospektpflicht um.

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Yoon, Soon Suk, and Gary Miller. "Earnings management of seasoned equity offering firms in Korea." International Journal of Accounting 37, no. 1 (January 2002): 57–78. http://dx.doi.org/10.1016/s0020-7063(02)00140-1.

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Bozos, Konstantinos, and Konstantinos Nikolopoulos. "Forecasting the value effect of seasoned equity offering announcements." European Journal of Operational Research 214, no. 2 (October 2011): 418–27. http://dx.doi.org/10.1016/j.ejor.2011.04.007.

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ERVINA, NANCY IKA, and MUSDHOLIFAH MUSDHOLIFAH. "Analisis Kinerja Keuangan PT. BNI (Persero) Tbk Sebelum dan Sesudah Melakukan Seasoned Equity Offerings." BISMA (Bisnis dan Manajemen) 3, no. 1 (June 6, 2018): 34. http://dx.doi.org/10.26740/bisma.v3n1.p34-48.

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Seasoned equity offering (SEO) is done by public company which need seasoned loan to costing operational activities and invest. Except to costing operational activities and invest a company, this offering can used to looking for seasoned loan to pay company loan. The aim of this study is to analyze financial performance of PT. BNI (Persero) Tbk before and after seasoned equity offering (SEO) with CAMELS (Capital, Assets Quality, Management, Equity, Liquidity, dan Sensitivity) measurement. This research represent descriptive which purposed to collect information about exist symptom. This research is done in PT. BNI (Persero) Tbk. Ratio analysis are using Capital : CAR, Assets Quality : KAP1 dan KAP2, Earning : ROA dan BOPO, Liquidity : NCM to CA dan LDR, which later from the ratio can be explained its meaning. The conclusion of this research that financial performance PT. BNI (Persero) Tbk generally before seasoned equity offering (2006) is better than after seasoned equity offering (2008) which is in first period (January – March), second period (April – June), and third period (July – September). Therefore in fourth period (October - December) 2008, financial performance PT. BNI (Persero) Tbk is better than 2006.

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Balachandran, Balasingham, Sutharson Kanapathippillai, Chandrasekhar Krishnamurti, Michael Theobald, and Eswaran Velayutham. "The issuance of warrants in rights offerings: Agency costs and signaling effects." Australian Journal of Management 42, no. 4 (March 13, 2017): 608–36. http://dx.doi.org/10.1177/0312896216682062.

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We examine the issuance choice across rights issues of equity, unit offerings, and standalone warrants and investigate the market reactions to these issue types. We find that agency costs, growth opportunities, and current funding needs relative to assets in place are prime drivers of the type of equity issuance choice. Managers use quality signals such as underpricing, underwriting status, and the proportion of funds raised by exercising warrants in determining the features of the warrant issue. Furthermore, we document that the market reacts more favorably to standalone warrants issues than units and equity during the rights offering period.

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Broniarczyk, Susan M., and Andrew D. Gershoff. "The Reciprocal Effects of Brand Equity and Trivial Attributes." Journal of Marketing Research 40, no. 2 (May 2003): 161–75. http://dx.doi.org/10.1509/jmkr.40.2.161.19222.

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Brands increasingly introduce products with attributes that fail to provide consumers with meaningful benefits (i.e., trivial attributes). The authors present two experiments that examine the effect of brand equity on consumer valuation of such trivial attributes and the reciprocal effect that such a strategy may have on brand equity. The results show that both high and low equity brands benefit from offering an attractive trivial attribute in the absence of a disclosure of its true value. However, prechoice disclosure of an attribute's triviality heightens the role of the brand and context cues. Competing low equity brands benefit by sharing the trivial attribute with a higher equity brand, whereas competing high equity brands benefit from uniquely offering a trivial attribute. Postchoice revelation that an attribute is trivial hurts the subsequent ability of a low but not a high equity brand to differentiate in a new product category, particularly among subjects who had previously chosen the target brand. For insights on brand dilution, the authors also examine consumer attributions regarding marketer intent for offering a trivial attribute.

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Jindra, Jan. "Seasoned Equity Offerings, Valuation and Timing: Evidence from 1980's and 1990's." Quarterly Journal of Finance 03, no. 03n04 (September 2013): 1350013. http://dx.doi.org/10.1142/s2010139213500134.

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While the existing literature has focused on whether firms issue equity when they are overvalued, this paper examines whether there was a better time to issue seasoned equity when the valuation of a firm's shares might have been even more favorable. Using three valuation approaches, the findings suggest that: (1) the valuation of firms issuing seasoned equity is the most favorable at the time of the offering and (2) the estimated valuation errors are significantly related to the probability that firms will undertake a seasoned equity issue. These results are consistent with firms optimizing the timing of the seasoned equity offering so as to take maximum possible advantage of misvaluation of their shares.

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Wisudanto, Wisudanto, Celine Ilyassin, and Mayliya Alfi Nurrita. "Outside Large Shareholder dan Dividen pada Seasoned Equity Offering (SEO)." E-Jurnal Akuntansi 30, no. 4 (April 23, 2020): 874. http://dx.doi.org/10.24843/eja.2020.v30.i04.p06.

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Hopkins, Mike, and Donald G. Ross. "Key Drivers of Private Equity FirmCertification at Initial Public Offering." Journal of Private Equity 16, no. 2 (February 28, 2013): 69–89. http://dx.doi.org/10.3905/jpe.2013.16.2.069.

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Melia, Adrian, Paul Docherty, and Steve Easton. "The impact of regulation on the seasoned equity offering decision." Australian Journal of Management 45, no. 1 (May 10, 2019): 94–113. http://dx.doi.org/10.1177/0312896219833724.

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The rarity of rights issues in the United States makes it difficult to examine the choice between alternative seasoned equity offering (SEO) methods in that market. In Australia, however, both rights issues and private placements are prevalent. We therefore use the Australian market to test whether regulation influences a firm’s choice between rights issues and private placements. When a firm decides to issue seasoned equity in Australia, regulation favours private placements if the issue is small or needs to be completed quickly. Consistent with regulations affecting the choice between SEO types, our empirical results provide evidence that firms in Australia are more likely to choose a private placement for small issues or when taking advantage of temporary periods of overvaluation. JEL Classification: G12, G14

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Zhou, Jian, and Randal Elder. "Audit quality and earnings management by seasoned equity offering firms." Asia-Pacific Journal of Accounting & Economics 11, no. 2 (December 2004): 95–120. http://dx.doi.org/10.1080/16081625.2004.10510638.

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Chen, Xiaoyan. "Improved corporate governance and Chinese seasoned equity offering announcement effects." Accounting & Finance 57, no. 2 (June 26, 2015): 401–28. http://dx.doi.org/10.1111/acfi.12152.

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Gombola, Michael, Hei Wai Lee, and Feng-Ying Liu. "Evidence of Selling by Managers after Seasoned Equity Offering Announcements." Financial Management 26, no. 3 (1997): 37. http://dx.doi.org/10.2307/3666212.

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Dutordoir, Marie, Norman Strong, and Ping Sun. "Shelf versus Traditional Seasoned Equity Offerings: The Impact of Potential Short Selling." Journal of Financial and Quantitative Analysis 54, no. 3 (September 7, 2018): 1285–311. http://dx.doi.org/10.1017/s0022109018000911.

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Traditional seasoned equity offerings (SEOs) elicit short selling from traders trying to increase offering discounts. Such short selling is more difficult for shelf offerings because the time between their announcement and issuance tends to be shorter. We predict and find that firms with higher short-selling potential (SSP) are more likely to choose shelf over traditional SEOs. This result is robust to alternative proxies for SSP and other sensitivity tests. Further analysis suggests that shelf issuers aim to mitigate the threat of manipulative short selling. Our findings add to a growing literature showing that short selling has a real impact on corporate finance decisions.

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Hovakimian, Armen, and Huajing Hu. "Anchoring on Historical High Prices and Seasoned Equity Offerings." Journal of Financial and Quantitative Analysis 55, no. 8 (September 17, 2019): 2588–612. http://dx.doi.org/10.1017/s0022109019000723.

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We document that firms’ financing decisions are affected by historical high prices. The ratio of the monthly high price to the 12-month historical high price positively affects the probability of a seasoned equity offering (SEO). Furthermore, the postannouncement market reaction is muted and the offering discount is smaller if the preannouncement stock price is high relative to its historical high price. The results suggest that historical high price reference points may help managers rationally time SEOs to take advantage of market reception and minimize issuance costs.

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Bella Sri Lestari, Ni Komang, and Dewa Gede Wirama. "Perbandingan Reaksi Pasar atas Seasoned Equity Offering dengan Tujuan Investasi dan Membayar Utang." E-Jurnal Akuntansi 30, no. 10 (October 27, 2020): 2629. http://dx.doi.org/10.24843/eja.2020.v30.i10.p15.

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This research compares market reaction to seasoned equity offering (SEO) with investment purpose and debt repayment purpose. The research was triggered by pecking order theory’s. The sample of this research is 62 Indonesian public companies that carried out SEO during the 2013 to 2019 period. The SEO announcement date is used as event date. The event window is five days around the event date. Abnormal return is measured by market-adjusted model. The result of independent sample t-test shows that market reaction to SEO with investment purpose is better than market reaction to SEO with debt repayment purpose. Average cumulative abnormal return (CAR) of SEO with investment purpose is 0.038 and for SEO with debt repayment purpose is minus 0.006. The difference is statistically significant (p-value=0.011). Therefore, it is concluded that markets response to additional equity offering, in this case using SEO, depends on the purpose of the SEO. Keywords: Seasoned Equity Offering; Market Reaction; Abnormal Return; Market-Adjusted Model.

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Sunandes, Aris, and Artika Anissa Fatluloh. "ANALISIS KANDUNGAN INFORMASI PROSPEKTUS INITIAL RETURN PADA PERUSAHAAN YANG MELAKUKAN INITIAL PUBLIC OFFERING DI IDX." AKUNTABILITAS: Jurnal Ilmiah Ilmu-Ilmu Ekonomi 12, no. 1 (June 30, 2019): 82–94. http://dx.doi.org/10.35457/akuntabilitas.v12i1.778.

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This study aims to analyze the Return on Assets (ROA) and Debt to Equity Ratio (DER) effects on Initial Public Offering (IPO) on financial companies listed on the Indonesia Stock Exchange. The research period was 2014-2106 with a sample of 36 financial companies which made an initial public offering on the Indonesia Stock Exchange. Companies that conduct Initial Public Offering show conditions as quite high classified. The results showed that Return on Assets (ROA) and Debt to Equity Ratio (DER) did not have a significant effect on initial returns on financial companies listed on the Indonesia Stock Exchange in 2014-2016

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Chen, Zhihong, Bin Ke, and Zhifeng Yang. "Minority Shareholders' Control Rights and the Quality of Corporate Decisions in Weak Investor Protection Countries: A Natural Experiment from China." Accounting Review 88, no. 4 (February 1, 2013): 1211–38. http://dx.doi.org/10.2308/accr-50424.

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ABSTRACT Using a 2004 Chinese securities regulation that requires equity offering proposals to obtain the separate approval of voting minority shareholders, we examine whether giving minority shareholders increased control over corporate decisions helps to reduce value-decreasing corporate decisions for firms domiciled in weak investor protection countries. We find that the regulation deters management from submitting value-decreasing equity offering proposals in firms with higher mutual fund ownership. There is also weak evidence that minority shareholders are more likely to veto value-decreasing equity offering proposals in firms with higher mutual fund ownership in the post-regulation period. Overall, our evidence suggests that in weak investor protection countries, the effect of granting minority shareholders increased control over corporate decisions on the quality of corporate decisions depends on the composition of minority shareholders. JEL Classifications: G32; G34; G38

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Kim, Yongtae, and Myung Seok Park. "Pricing of Seasoned Equity Offers and Earnings Management." Journal of Financial and Quantitative Analysis 40, no. 2 (June 2005): 435–63. http://dx.doi.org/10.1017/s0022109000002374.

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AbstractThis study examines the relations between earnings management by firms offering seasoned equity issues and the pricing of their offers. We hypothesize that seasoned equity offering (SEO) firms that employ aggressive accounting decisions also more aggressively push up their offer prices, thereby leading to a decrease in the degree of underpricing. Consistent with our prediction (the issuer's greed hypothesis), evidence indicates that SEO firms that make opportunistic accounting decisions issue new shares at inflated prices. Our findings remain robust after controlling for other determinants of SEO underpricing and the possible endogeneity of pricing and earnings management.

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Huang, Han-Ching, Yong-Chern Su, and Hsuan-Yin Wang. "Convergence to market efficiency: the case of seasoned equity offering stocks." Investment Analysts Journal 44, no. 1 (January 2, 2015): 57–70. http://dx.doi.org/10.1080/10293523.2015.994445.

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Jones, Travis L., Xudong Fu, and Tian Tang. "Day‐of‐the‐week effect in the seasoned equity offering discount." Managerial Finance 35, no. 1 (December 12, 2008): 48–62. http://dx.doi.org/10.1108/03074350910922582.

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Burton, Bruce, Christine Helliar, and David Power. "Practitioner perspectives on the seasoned equity offering process in the UK." British Accounting Review 37, no. 2 (June 2005): 153–75. http://dx.doi.org/10.1016/j.bar.2004.09.005.

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Li, Hui, Hong Liu, and Chris Veld. "The effects of bank regulation stringency on seasoned equity offering announcements." Journal of International Money and Finance 91 (March 2019): 71–85. http://dx.doi.org/10.1016/j.jimonfin.2018.11.001.

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Comiran, Fernando, Tatiana Fedyk, and Joohyung Ha. "Accounting quality and media attention around seasoned equity offerings." International Journal of Accounting & Information Management 26, no. 3 (August 6, 2018): 443–62. http://dx.doi.org/10.1108/ijaim-02-2017-0029.

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Purpose This paper aims to investigate how media coverage affects the quality of accounting information for seasoned equity offering (SEO) firms. Design/methodology/approach The sample includes SEOs completed between January 1993 and December 2014 in the USA that are available from Thomson Financial’s Securities Data Company. The FactSet database was used to measure the amount of media coverage. The paper considers two types of earnings management: accrual-based earnings management and real earnings management. Findings This study finds that the media serves as a watchdog for real earnings management but does not affect accrual manipulations. These findings hold when endogenous factors affecting firms’ earnings management choices are controlled for and also when alternative time windows for media coverage are examined. Originality/value This paper is the first to demonstrate that media attention affects the quality of accounting information during equity offerings, as it successfully reduces real earnings management.

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Katz, Barbara Goody, and Joel Owen. "Initial Public Offerings: An Equilibrium Model of Price Determination." Journal of Accounting, Auditing & Finance 2, no. 3 (July 1987): 266–84. http://dx.doi.org/10.1177/0148558x8700200305.

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We determine the optimal initial offering price for a new equity issue. Our model includes an entrepreneur, an underwriter, and investors, all belonging to a larger economic environment. The entrepreneur is willing to forgo some of his equity for investors' capital. We formulate the underwriter's pricing decision in the presence of signaling uncertainty as a minimax problem and show that underpricing follows from a specific set of loss functions. The more the underwriter wishes to avoid the consequences of overpricing relative to underpricing, the lower the optimal initial offering price and, all things being equal, the greater the underpricing. Also, when the optimal initial offering price is driven to its lower bound, it is, almost surely, less than the random equilibrium price, and the issue is underpriced. Consistency of our model with empirical evidence is discussed.

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Juliana, Sabda Risky, and Sumani Sumani. "ANALISIS KINERJA KEUANGAN PERUSAHAAN SEBELUM DAN SESUDAH MELAKUKAN INITIAL PUBLIC OFFERING (IPO)." Jurnal Akuntansi 13, no. 2 (October 1, 2019): 105–22. http://dx.doi.org/10.25170/10.25170/jara.v13i2.476.

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This study aims to determine the differences in corporate financial performance before and after Initial Public Offering (IPO). Variables in this study using Current Ratio (CR), Total Assets Turn Over (TATO), Debt to Equity Ratio (DER), Return On Equity (ROE). The sample used in this study is a company that IPO in 2013-2014 as many as 37 companies with purposive sampling method. Hypothesis testing method using paired sample t-test (paired sample t-test).Based on the results of descriptive analysis shows the increase of CR means after IPO, while in TATO, DER, ROE decreased. Based on the results of paired sample T-test shows there are significant differences in CR, TATO, ROE after IPO, while DER no significant difference after IPO.

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Gao, Xinghua, and Yonghong Jia. "The Role of Internal Control in the Equity Issue Market: Evidence From Seasoned Equity Offerings." Journal of Accounting, Auditing & Finance 32, no. 3 (September 14, 2015): 303–28. http://dx.doi.org/10.1177/0148558x15602821.

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This article examines the role of internal control requirements under the Sarbanes–Oxley (SOX) Act of 2002 in firms’ cost of raising equity capital. We find that, prior to the disclosure of internal control weaknesses (ICWs), ICWs are not directly associated with underwriters’ gross spread and seasoned equity offering (SEO) underpricing. After the disclosure, however, underwriters charge a risk premium on ICW issuers, especially on those disclosing ICWs in multiple consecutive years. We also find that SEO underpricing is exacerbated by multiple-year-disclosed ICWs but not by first-timers. More notably, we find that managers play a dominant role in deciding issue size pre-disclosure, but this dominance weakens post-disclosure. Taken together, our evidence suggests that internal controls help moderate the cost of raising equity capital and that ICW disclosures have significant implications for underwriters in the equity issue market.

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CHALDAEVA, Larisa A., and Arsenii A. DANILIN. "Transactions of VTB Bank with debt and equity securities." Finance and Credit 27, no. 5 (May 28, 2021): 998–1021. http://dx.doi.org/10.24891/fc.27.5.998.

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Subject. This article covers VTB's operations with securities and their effect on bank's financial sustainability and growth in assets. The main focus of the study was put on secondary public offering in 2013 and the issue of perpetual bonds in 2012 by VTB. Objectives. We assess the dynamics of VTB's balance sheet items as a result of secondary public offering. We analyze consequences of perpetual bonds issued in terms of their lucrativeness for the issuer and investors. The study identifies factors affecting the market value and liquidity of VTB's perpetual bonds on the MOEX. Methods. The research methods are based on the factor analysis of VTB’s balance sheet items. Statistical, graphical and economic analyses are also used in the study. Results. Secondary public offering caused a significant growth of the bank's assets. The issue of perpetual bonds allows increasing tier 1 capital of VTB. Conclusions and Relevance. Based on the results, recommendations were presented for VTB bank concerning the equity and debt securities. We determined negative consequences that might happen after another issue of bonds, which can influence an amount of the State's share in VTB. We especially consider the future issue of VTB's bonds in terms of coupon payments, which may help reduce expenditures on the servicing of debt bonds issued.

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Signori, Andrea, and Silvio Vismara. "Does success bring success? The post-offering lives of equity-crowdfunded firms." Journal of Corporate Finance 50 (June 2018): 575–91. http://dx.doi.org/10.1016/j.jcorpfin.2017.10.018.

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Kim, Kyung Soon, Jin Hwon Lee, and Chune Young Chung. "Accrual Quality and Opportunistic Seasoned Equity Offering in the Korean Stock Market." Emerging Markets Finance and Trade 51, sup3 (May 2015): 140–57. http://dx.doi.org/10.1080/1540496x.2015.1026732.

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SONG, MICHAEL, AD DE JONG, C. ANTHONY DI BENEDETTO, and Y. LISA ZHAO. "ENHANCING SUPPLIER’S INVOLVEMENT IN STARTUP’S INNOVATION THROUGH EQUITY OFFERING AND TRUST BUILDING." International Journal of Innovation Management 23, no. 02 (January 27, 2019): 1950013. http://dx.doi.org/10.1142/s1363919619500130.

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External partners, such as suppliers, are important in the case of innovation by entrepreneurial startup firms. Due to their limited resources and liability of newness, these startups must rely on outside partners for resources and legitimacy to succeed and indeed to survive. Yet, few studies have specifically examined, or provided guidance on, how startups can increase supplier involvement in their innovation projects. Drawing from Transactional Cost Economics and supplier involvement literature, this study develops a contingency model, in which supplier’s equity share and supplier’s trust moderate the relationship of supplier’s involvement in a startup’s innovation with supplier’s specific investment and startup’s effort in qualification of supplier’s ability. We empirically test the model using data collected from 166 innovation projects of 166 startups. Our results show that supplier involvement is pivotal to startup’s product innovation performance, which is consistent with prior literature on supplier involvement. Interestingly, our results further reveal that supplier’s specific investment and startup’s effort in qualification of supplier’s ability lead to higher levels of supplier involvement only when supplier’s equity share and supplier’s trust are sufficiently high.

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Chang, Chu-Hsuan, and Hsiou-Wei William Lin. "Does there prevail momentum in earnings management for seasoned equity offering firms?" International Review of Economics & Finance 55 (May 2018): 111–29. http://dx.doi.org/10.1016/j.iref.2017.12.015.

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P., Sashikala, and Girish G. P. "Factors Influencing Retail Investor’s Trading Behavior in Indian Equity Market." International Journal of Business and Management 10, no. 11 (October 26, 2015): 206. http://dx.doi.org/10.5539/ijbm.v10n11p206.

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In this study we identify the factors which influence and affect retail investor’s trading behavior in Indian equity market. To identify the factors, we use primary data collected from retail investors belonging to different age group, professional backgrounds and demographics of India. The results of the study suggest that factors like broker’s advice, personal analysis, current price of the equity stock, financial analyst’s recommendations, inclination towards online trading; investor’s confidence in advice given by his/her financial advisor plays a major role in influencing and affecting trading behavior of retail investors. The result of the study gives insights to firms offering financial services in developing nation like India to keep these factors in mind while offering products/services or in their marketing campaigns while targeting retail investors of Indian equity market.

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El Badraoui, Khalid, and Jamal Ouenniche. "The Long-Run Performance Following Convertible Debt Offerings: Does The Design Matter?" Journal of Applied Business Research (JABR) 30, no. 3 (April 24, 2014): 883. http://dx.doi.org/10.19030/jabr.v30i3.8573.

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This paper examines the impact of convertible debt design on the long-run stock price performance of the issuing firms in France. More specifically, we divide French convertible bonds (CBs) into three categories; namely, debt-like, mixed, and equity-like CBs, based on their total conversion probability, which integrates the possibility of early exercise of the call feature. In line with previous empirical studies, our results show that French CB issuers experience a substantial increase in their stock price profitability before the offering followed by significant under-performance over the three year post-issue event window. However, the breakdown of our sample into three groups of CBs depending on their design reveals, on one hand, a strong evidence of stock price run-up before the offering only for equity-like and mixed CBs. On the other hand, the post-issue performance is worse only for equity-like issuers, indicating that the post-issue performance is poorer the more the convertible debt issuer's stock is over-valued prior to the offering. This finding is consistent with the market timing hypothesis.

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Lin, Yi-Hua, Yenn-Ru Chen, and Jeng-Ren Chiou. "Ownership control and rights offerings in Chinese listed firms." Corporate Ownership and Control 5, no. 4 (2008): 481–91. http://dx.doi.org/10.22495/cocv5i4c5p8.

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Most Chinese listed companies were transformed from state-owned enterprises (SOEs). Institutional transformation results in an ownership structure that is characterized by highly concentrated ownership and state-owned shares, which may exert an influence on corporate finance. In China, listed companies rely heavily on equity for capital needs, but the government blockholders often subscribe to no shares or to partial shares; they tunnel seasoned offering equity (SEO) capital to their nonprofit units through related party transactions. Therefore, we examine large shareholders’ rights offering behavior and firms’ subsequent operating performance. The results reveal that with a higher ratio of state-owned shares, large shareholders tend to give up all preemptive rights for new shares of stock. Evidence confirms a predicted positive relation between large shareholders’ full rights subscription behavior and firms’ subsequent operating performance

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Arugaslan, Onur, and Louise Miller. "On the Conditioning of the Financial Market’s Reaction to Seasoned Equity Offerings." LAHORE JOURNAL OF ECONOMICS 11, no. 2 (July 1, 2006): 141–54. http://dx.doi.org/10.35536/lje.2006.v11.i2.a8.

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Consistent with asymmetric information arguments, prior research has shown that the financial market typically responds negatively to the announcement of a seasoned equity offering (SEO). Korajczyk and Levy (2003), however, suggest that while some firms time the issuance of their common stock to take advantage of outside investor overvaluations, financially constrained firms do not. We examine whether prior information on how financially constrained a firm is along with its growth prospects influences the financial market’s response to the firm’s announcement to sell common stock. We find evidence that the financial market does condition its response upon such information using a sample of SEOs from the U.S. Our results also have implications for the financial market’s reaction to SEOs/rights offerings in emerging markets.

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Journal articles on the topic 'Equity offering'

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