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| Author: | Chollet, P. Ginglinger, E. |
| Title: | The pricing of French unit seasoned equity offerings |
| Journal: | European Financial Management
2001 : MAR, VOL. 7:1, p. 23-38 |
| Index terms: | SIGNALING WARRANTS FRANCE |
| Freeterms: | SEASONED EQUITY OFFERINGS UNDERPRICING UNITS |
| Language: | eng |
| Abstract: | Units are bundles of common stock and warrants. By issuing units, firms precommit to a future and uncertain seasoned offering at the exercise price of the warrants. This study shows that the issuance of units seasoned offerings in France is accompanied by significant abnormal returns of an average 9-12%, depending on the computing methods. Underpricing increases with the risk of the issuer and the relative size of the future seasoned equity issue linked to warrant exercises. |
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