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Two Essays on Security Offerings: Information Production, Investor Perception and The Types of External Financing, and A Unified Analysis on Financing Choices and Offering Costs

I investigate the impacts that information production, information asymmetry have on firms financing choices 3/4 equity financing or debt financing. I find that equity issue announcements encourage more information production than debt issue announcements, which in turn raises the probability of equity financing. In addition, the post-issue stock market performance is positively associated with information production. The results are robust after controlling for investor optimism. I also apply the Heckmans two-step procedure to jointly investigate firms financing choices and offering costs. I find that security-issuing firms choose the less-costly financing type.

Identiferoai:union.ndltd.org:USF/oai:scholarcommons.usf.edu:etd-1924
Date11 March 2005
CreatorsYi, Bingsheng
PublisherScholar Commons
Source SetsUniversity of South Flordia
Detected LanguageEnglish
Typetext
Formatapplication/pdf
SourceGraduate Theses and Dissertations
Rightsdefault

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