The impact of regulation on information quality and performance around seasoned equity offerings: International evidence
| Autor: | Alvaro G. Taboada, Gilberto Loureiro, Larry Fauver |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
Finance Market abuse Economics and Econometrics 050208 finance business.industry Strategy and Management 05 social sciences Equity (finance) Information quality Accounting 04 agricultural and veterinary sciences Directive Information asymmetry Earnings management 0502 economics and business Prospectus 0401 agriculture forestry and fisheries Business Business and International Management Institutional quality |
| Zdroj: | Journal of Corporate Finance. 44:73-98 |
| ISSN: | 0929-1199 |
| DOI: | 10.1016/j.jcorpfin.2017.03.008 |
| Popis: | We examine the impact of the enactment of the Market Abuse Directive (MAD) and the Prospectus Directive (PD) across 18 EU countries on seasoned equity offerings (SEOs). Using a difference-in-differences methodology, we document a significant reduction in earnings management, improved post-SEO stock return performance, and a decline in the adverse reaction to SEO announcements following the enactment of MAD. We find similar, albeit weaker, results post-PD. The impact is stronger in countries with high ex-ante institutional quality. Our results suggest that the enactment of these directives leads to improvements in information quality, which reduces information asymmetry around SEOs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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