Handbook of Corporate Finance Empirical Corporate Finance Volume 1

314 B.E. Eckbo et al. The intuition behind these predictions forARis as follows. Starting with the first line (uninsured rights) ...

Ch. 6: Security Offerings 315 The studies form average abnormal returns across a sample ofNissues asARt ≡ ( 1 /N ) ∑N i γitand r ...

316 B.E. Eckbo et al. Ta b l e 1 3 Average market reaction (AR, %) to announcements of seasoned equity offerings (SEOs) by U.S. ...

Ch. 6: Security Offerings 317 Ta b l e 1 3 (Continued) Study Sample size Sample period AR (%) Bethel and Krigman (2004)b 747 199 ...

318 B.E. Eckbo et al. Chaplinsky and Haushalter (2003), Krishnamurthy et al. (2005), andBarclay, Holder- ness, and Sheehan (2005 ...

Ch. 6: Security Offerings 319 Ta b l e 1 4 Average market reaction (AR, %) to announcements of seasoned equity offerings (SEOs) ...

320 B.E. Eckbo et al. Ta b l e 1 4 (Continued) Country Study Sample size Sample period AR (%) (d) Firm commitments:N= 1 ,064;ARf ...

Ch. 6: Security Offerings 321 Sushka, and Lai, 2000) and a negative announcement effect in Hong Kong (Wu and Wang, 2006b). The s ...

322 B.E. Eckbo et al. Ta b l e 1 5 Average market reaction (AR, %) to announcements of debt offerings by U.S. firms Study Sample ...

Ch. 6: Security Offerings 323 tion is small and insignificant in all of the subsequent studies byMikkelson and Partch (1986), Ec ...

324 B.E. Eckbo et al. Ta b l e 1 6 Summary of sample-weighted average market reaction (AR, %) to security offerings (aggregate s ...

Ch. 6: Security Offerings 325 the various theoretical models listed inTable 12suggest a link betweenARand a set of characteristi ...

326 B.E. Eckbo et al. average market reaction to SEOs. Convertibles are a hybrid between debt and equity, and a convertible debt ...

Ch. 6: Security Offerings 327 reaction to standbys and firm commitment offerings indicate that the signal quality of the underwr ...

328 B.E. Eckbo et al. market reaction to straight debt offerings summarized inTable 16is not statistically significantly differe ...

Ch. 6: Security Offerings 329 reaction to the news of the offering price) on offer-specific characteristics, including the disco ...

330 B.E. Eckbo et al. Security offerings and market timing Consider a company that faces a steady stream of new projects. In t ...

Ch. 6: Security Offerings 331 The model ofLucas and McDonald (1990)departs from other models of adverse selection in that they a ...

332 B.E. Eckbo et al. equity. As more profitable and more underpriced firms find it optimal to equity finance, the equity offer ...

Ch. 6: Security Offerings 333 greater debtholder wealth gains. Thus, there are greater costs to equity issues in eco- nomic down ...