Seasoned equity issues trigger share price declines, and this is usually interpreted as evidence of signalling. We find that seasoned equity issues also typically result in much lower managerial ownership in U.S. firms. Jensen and Meckling (1976) predict a stock price decline when managerial ownership falls. We conduct several tests to distinguish agency explanations form signalling explanations, and conclude that both effects are present. © 1999 Kluwer Academic Publishers.
Bigelli M., Mehrotra V., Morck R., Yu W. (1998). Changes in management ownership and the valuation effects of equity offerings. THE JOURNAL OF MANAGEMENT AND GOVERNANCE, 2(4), 297-309 [10.1023/A:1009963405008].
Changes in management ownership and the valuation effects of equity offerings
Bigelli M.;Yu W.
1998
Abstract
Seasoned equity issues trigger share price declines, and this is usually interpreted as evidence of signalling. We find that seasoned equity issues also typically result in much lower managerial ownership in U.S. firms. Jensen and Meckling (1976) predict a stock price decline when managerial ownership falls. We conduct several tests to distinguish agency explanations form signalling explanations, and conclude that both effects are present. © 1999 Kluwer Academic Publishers.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
