Does managerial ability matter for the choice of seasoned equity offerings?

Autor:	Pratheepkanth Puwanenthiren, Md. Al Mamun, Darren Henry, Premkanth Puwanenthiren, Man Dang
Rok vydání:	2019
Předmět:	Economics and Econometrics 050208 finance Corporate governance 05 social sciences Institutional investor Equity (finance) Certification Microeconomics Information asymmetry External governance 0502 economics and business Business Endogeneity 050207 economics Finance
Zdroj:	The North American Journal of Economics and Finance. 47:442-460
ISSN:	1062-9408
DOI:	10.1016/j.najef.2018.06.002
Popis:	We provide evidence that managerial ability is positively and significantly related to the issuance method decision of seasoned equity offerings (SEOs) in the U.S. market. Our result is robust after controlling for various internal and external governance mechanisms, addressing the problem of endogeneity, and adopting a number of alternative specifications. We further find that the impact of managerial ability on the SEO issuance choice is stronger for firms with higher information asymmetry, CEO duality and weaker governance settings. Overall, our study supports the notion that higher managerial ability is perceived as a positive quality certification on firm information environments.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::d9bc1ce932bc8bc720fd2a5b39751fef https://doi.org/10.1016/j.najef.2018.06.002 Zobrazit plný text záznamu Full Text from ScienceDirect