search query: @author Moore, W. T. / total: 12
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| Author: | Schadler, F. P. Moore, W. T. |
| Title: | The effects of predictability on stock price response to the financing decision. |
| Journal: | Journal of Business Finance and Accounting
1992 : NOV, VOL. 19:6, p. 865-875 |
| Index terms: | PREDICTION THEORY SHARE PRICES DECISION MAKING SECURITIES |
| Language: | eng |
| Abstract: | The ability to correctly predict the need for financing and the type of security a firm will issue should mitigate any price response associated with an announcement of the intent to engage in a new issue od debt or common stock. This study uses multiple discriminant analysis to control for the type of security a firm is likely to issue. Authors found that investors usually anticipate a debt issue but will use certain financial indicators to increase their expectation of a common stock issue. Results indicate that this expectation is apparently incorporated into the common stock price prior to the issue announcement. |
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