search query: @indexterm seasons / total: 10
reference: 6 / 10
| Author: | Cronqvist, H. Nilsson, M. |
| Title: | The choice between rights offerings and private equity placements |
| Journal: | Journal of Financial Economics
2005 : NOV, VOL. 78:2, p. 375-407 |
| Index terms: | seasons |
| Freeterms: | private equity placements rights offerings |
| Language: | eng |
| Abstract: | This paper develops and tests a nested logit model to examine how companies choose between a rights offering and a private equity placement. Family controlled companies avoid issue methods that dilute control benefits or subject them to more monitoring, especially when the family's control margin is small and the wedge between votes and capital is large. Control considerations also affect security design. Private placements reduce contracting and ex post holdup costs in new product market relationships. |
SCIMA