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

A-Tier
Journal: Journal of Financial Economics
Year: 2011
Volume: 99
Issue: 2
Pages: 349-364

Authors (3)

Billett, Matthew T. (not in RePEc) Flannery, Mark J. Garfinkel, Jon A. (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:jfinec:v:99:y:2011:i:2:p:349-364
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25