The new issues puzzle: evidence from non-US firms
For non-US stocks of firms in the G7 countries, we empirically test the new issues puzzle -- stocks of firms that issue new equity are, on average, very poor investments relative to various benchmarks -- by market capitalization. Only for the United Kingdom do we find evidence for a significantly negative relation between net share issues and expected returns for larger capitalization stocks. There is some evidence for Japanese stocks. For the other four countries, a positive relation between net share issues and expected returns is observed.
Year of publication: |
2013
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Authors: | Bali, Turan G. ; Cakici, Nusret ; Fabozzi, Frank J. |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 20.2013, 17, p. 1586-1591
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Publisher: |
Taylor & Francis Journals |
Saved in:
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