Handbook of Corporate Finance Empirical Corporate Finance Volume 1

334 B.E. Eckbo et al. Another hypothesis that predicts variation in the relative frequency of equity and debt offers over the bu ...

Ch. 6: Security Offerings 335 are low compared to the stock returns of similar non-issuing firms (also shown in Section5.3below) ...

336 B.E. Eckbo et al. and book-to-market ratio alone may be insufficient as a control for systematic risk. Such a match ignores ...

Ch. 6: Security Offerings 337 do not fully incorporate managerial incentives to time equity issues. This results in initial over ...

338 B.E. Eckbo et al. are disappointed when firms convey their post-issue earnings. That is to say, post-issue earnings announce ...

Ch. 6: Security Offerings 339 by, among others,Stambaugh (1986, 1999).^48 For example, when a financial ratio such as book-to-ma ...

340 B.E. Eckbo et al. based on security offerings made over the 1980–2001 sample period, and compare these to the extant literat ...

Ch. 6: Security Offerings 341 and (9) information on market value of equity must be available. This results in a total sample of ...

342 B.E. Eckbo et al. effective holding period for stockiisTi, whereTiin the analysis below is either five years or the time unt ...

Ch. 6: Security Offerings 343 Ta b l e 1 7 Five-year buy-and-hold stock percent returns (BHR) for U.S. issuers and size- and boo ...

344 B.E. Eckbo et al. ence in the buy-and-hold returns of issuers and matched firms ranges from− 52 .0% for preferred equity pla ...

Ch. 6: Security Offerings 345 Ta b l e 1 8 Average difference in equal-weighted buy-and-hold returns for U.S. issuers (BHRi) and ...

346 B.E. Eckbo et al. Ta b l e 1 8 (Continued) Study Issuer type Sample size Sample period Holding period BHRi −BHRm E. Converti ...

Ch. 6: Security Offerings 347 5.3.3. Average monthly abnormal returns using factor pricing regressions In this section, we use e ...

348 B.E. Eckbo et al. French (1993)size and book-to-market factors. UMD is a momentum factor inspired by Carhart (1997)and const ...

Ch. 6: Security Offerings 349 Ta b l e 1 9 Monthly abnormal equal-weighted portfolio return (αp) following IPOs, SEOs, and equit ...

350 B.E. Eckbo et al. Ta b l e 2 0 Monthly abnormal equal-weighted portfolio return (αp) following public (SDOs) and private (PP ...

Ch. 6: Security Offerings 351 Ta b l e 2 1 Average monthly abnormal equal-weighted portfolio return (α) for three-to-five year h ...

352 B.E. Eckbo et al. Ta b l e 2 1 (Continued) Study Issuer type Sample size Sample period Holding period α E. Convertible debt ...

Ch. 6: Security Offerings 353 regression is then rI−rM=(αI−αM)+(β 1 I−β 1 M)F 1 +, (12) where=(β 2 I−β 2 M)F 2 +u, whereuis a ...