| Author: | Hull, R. M. Kerchner, R. |
| Title: | Issue costs and common stock offerings |
| Journal: | Financial Management
1996 : WINTER, VOL. 25:4, p. 54-66 |
| Index terms: | STOCKS COSTS SHARE VALUATION |
| Language: | eng |
| Abstract: | Different conclusions are reached by prior research of common stock offerings. The research is concerned on the impact of issue costs on stock value. Factors that can best explain the different findings are identified. Most prominent are the issue costs measure and the listing. There are 323 common stock offerings investigated. Findings include that USD 61 of every USD 100 fall in stock value can be attributed to issue costs. These findings suggest that the collective impact of the negative wealth effects from managerial signaling may be less important than generally is assumed. |
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