| Author: | Wu, C. Kwok, C. C. Y. |
| Title: | Why do US firms choose global equity offerings? |
| Journal: | Financial Management
2002 : Summer, VOL. 31:2, p. 47-65 |
| Index terms: | Companies Equity capital Stock markets Globalization Capital markets USA |
| Language: | eng |
| Abstract: | The authors examine the economic motivation for global seasoned equity offerings made by US firms. They find that firms announcing global offerings have significantly less negative market reactions than had they limited the issues to domestic only. The extent of the reduced price drop at issue announcement is found to be negatively associated with pre-announcement price run-up, firm size, and market-to-book equity, but positively associated with unsystematic risk. The authors also find that global issuing firms outperform domestic counterparts for up to three years following the offerings. |
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