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Recent univariate seasoned equity offering (SEO) research investigates the valuation impact from the change in inside ownership levels that occurs when insiders use SEOs to lower their ownership levels. We extend this research by investigating if the change in inside ownership levels is a...
Persistent link: https://www.econbiz.de/10009462237
To what extent can hedge funds influence stock price volatility surrounding theannouncements of major corporate events? To answer this question, this paper examinesone of the more common major corporate events: seasoned equity offerings (SEOs). Wetest the impact of hedge fund variables on...
Persistent link: https://www.econbiz.de/10009462241
Noted scholars argue that (1) economic models of capital taxation have been inadequately adapted to owner-managed enterprises and (2) capital structure researchers have used the wrong models while also improperly measuring key variables. Thus, a model that can overcome these problems should be...
Persistent link: https://www.econbiz.de/10011992247
In our view, the financial crisis was largely due to wrong incentives affecting the behavior of financial institutions and investors that was set in motion by our government's reluctance to let large financial institutions fail – i.e., the Too Big to Fail (hereafter, TBTF) policy. Also...
Persistent link: https://www.econbiz.de/10013156727
Persistent link: https://www.econbiz.de/10010735027
CPA certification is an important measure of professional achievement and a critical element to advancement in the accounting profession. The CPA exam is rigorous, with overall lower pass rates relative to other professional exams, and even lower pass rates for historically disadvantaged groups....
Persistent link: https://www.econbiz.de/10013244982
This paper broadens perpetuity gain to level (GL) research by analyzing the role of growth within the capital structure model (CSM) formalized by Hull (2007). We contrast the cost of using internal equity versus external equity when expanding a firm's assets. Contrary to pecking order theory, we...
Persistent link: https://www.econbiz.de/10009462238
This paper uses a multivariate framework to extend the recent univariate seasoned equity offering (SEO) research by Hull, Kwak and Walker (2010) that investigates the valuation impact of inside ownership. Our multivariate findings add to the univariate findings as we show that the inside...
Persistent link: https://www.econbiz.de/10009462240
This paper broadens perpetuity gain to leverage (GL) research by analyzing the role of growth within the Capital Structure Model (CSM) formalized by Hull (2007). We demonstrate that internal equity is more expensive than external equity due to the double corporate taxation of cash flows...
Persistent link: https://www.econbiz.de/10009462242
This study explores the role of issuance expenses in explaining the fall in stock value for OTC stock offerings that raise cash for debt reduction purposes. It estimates that over half of the sample's -2.79% two-day fall in stock value can be accounted for by issuance expenses when using a lower...
Persistent link: https://www.econbiz.de/10011310324