The Puzzle of Frequent and Large Issues of Debt and Equity
| Autor: | Jay R. Ritter, Rongbing Huang |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Equity risk
Economics and Econometrics Earnings Financial economics Equity ratio media_common.quotation_subject Equity (finance) Monetary economics Private equity fund Return on equity Issuer Accounting Debt Equity value Economics Portfolio Demographic economics Business Equity capital markets Finance Stock (geology) media_common |
| Zdroj: | Journal of Financial and Quantitative Analysis. 57:170-206 |
| ISSN: | 1756-6916 0022-1090 |
| DOI: | 10.1017/s0022109021000636 |
| Popis: | More frequent, larger, and more recent debt and equity issues in the prior 3 fiscal years are followed by lower stock returns in the subsequent year. The intercept of a q-factor calendar-time regression for the value-weighted (VW) portfolio of firms with at least 3 large issues is −0.63% per month (t-stat. = −4.31). Purging the factor returns of recent issuers increases the magnitude of the estimated underperformance following frequent equity issues. A VW Fama–MacBeth regression shows that firms with 3 equity issues underperform nonissuers by 0.65% per month (t-stat. = −2.65). Earnings announcement returns are low following frequent issues, especially equity issues. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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