The role of arbitrage risk on the elasticity of demand: New evidence from 100% secondary equity offerings
| Autor: | William B. Elliott, Hilmi Songur |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
040101 forestry
Price elasticity of demand 050208 finance Statistical arbitrage Financial economics 05 social sciences 04 agricultural and veterinary sciences Fixed income arbitrage Covered interest arbitrage 0502 economics and business Arbitrage pricing theory Economics 0401 agriculture forestry and fisheries Risk arbitrage Arbitrage Finance Index arbitrage |
| Zdroj: | Finance Research Letters. 19:165-172 |
| ISSN: | 1544-6123 |
| Popis: | We examine the elasticity of demand curves using a recent sample of 100% secondary equity offerings (i.e., a large block of shares held by current shareholders; the proceeds of the sale go to the selling shareholders, not the issuing company) and employ measures of arbitrage risk that allow us to control for variation in arbitrage risk. We find that demand curves are inelastic for firms with high levels of arbitrage risk and elastic for all others. We also document that during the second half of our sample period demand curves are elastic for all stocks regardless of the arbitrage risk. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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