Handbook of Corporate Finance Empirical Corporate Finance Volume 1

234 B.E. Eckbo et al. 3.7. Rights and standby offerings 286 3.8. Shelf registered offerings 286 3.9. Over-allotment options, war ...

Ch. 6: Security Offerings 235 Abstract This essay surveys the extant literature and adds to the empirical evidence on issuance a ...

236 B.E. Eckbo et al. Introduction Security offerings are a very visible and important activity in the life of a firm. Their v ...

Ch. 6: Security Offerings 237 placements, the main focus is on issuances by exchange-listed firms—both seasoned equity offerings ...

238 B.E. Eckbo et al. A third major objective of the survey is to both review and provide additional evi- dence on short- and lo ...

Ch. 6: Security Offerings 239 employee stock ownership plans (ESOPs), equity bonus plans, mutual-to-stock con- versions, forced ...

240 B.E. Eckbo et al. flotation method was only available to larger, financially sound issuers meeting the fol- lowing requireme ...

Ch. 6: Security Offerings 241 home market regulatory approval before initiating any foreign trading in its securities. There can ...

242 B.E. Eckbo et al. A second major change in SEC regulations is increased disclosure requirements in registration statements a ...

Ch. 6: Security Offerings 243 Glass–Steagall Act which prohibited commercial banks and their subsidiaries from affil- iating wit ...

244 B.E. Eckbo et al. Ta b l e 1 Flotation methods Firm commitment. An underwriter contractually commits to purchase an entire s ...

Ch. 6: Security Offerings 245 Ta b l e 1 (Continued) Best effort. Investment banks do not underwrite these security issues, inst ...

246 B.E. Eckbo et al. Syndicate roles and compensation. Lead underwriters form and coordinate syndicates and receive the managem ...

Ch. 6: Security Offerings 247 Road show. To market a security offering, senior management and the lead underwrit- ers travel to ...

248 B.E. Eckbo et al. Some issues are also allocated to friends and family of the issuer’s management and to CEOs of companies t ...

Ch. 6: Security Offerings 249 others who do so. There is also a filing requirement after the sale or purchase by insiders of the ...

250 B.E. Eckbo et al. Ta b l e 2 Flotation methods used to sell various types of securities Security type Flotation method IPOs ...

Ch. 6: Security Offerings 251 are sold through a book building mechanism. Internationally, the firm commitment book building met ...

252 B.E. Eckbo et al. Ta b l e 3 Annual distribution of the population of 80,627 security issues in the U.S., 1980–2003 Year Equ ...

Ch. 6: Security Offerings 253 Ta b l e 3 (Continued) Year PP straight debt PP common stock Conv. debt ADR All Regular Reg-144a A ...