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Bookbuilding and Strategic Allocation
Cornelli, Francesca; Goldreich, David - C.E.P.R. Discussion Papers - 1999
Under the bookbuilding procedure, an investment banker solicits bids for shares from institutional investors prior to pricing the issue. After collecting this demand information, the investment banker prices the issue and allocates shares to the investors. We examine the books from 39...
Persistent link: https://www.econbiz.de/10005666528
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Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure
Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003
strongest implication of this theory of capital structure evolution is that optimal capital structure is essentially dynamic … prices are low. The theory explains many stylized facts that fly in the face of existing capital structure theories and also … generates new testable predictions. Moreover, the theory can rationalize the use of debt in the absence of taxes, agency costs …
Persistent link: https://www.econbiz.de/10005666532
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Bookbuilding: How Informative is the Order Book?
Cornelli, Francesca; Goldreich, David - C.E.P.R. Discussion Papers - 2001
When using a formal bookbuilding procedure, underwriters observe the demand curves of investors as stated in the ‘book’ prior to pricing shares in an equity issue. The purpose of this Paper is to examine whether the investment bank uses the information in the book when setting the issue...
Persistent link: https://www.econbiz.de/10005791587
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A Model of Corporate Liquidity
Anderson, Ronald W.; Carverhill, Andrew - C.E.P.R. Discussion Papers - 2005
We study a continuous time model of a levered firm with fixed assets generating a cash flow that fluctuates with business conditions. Since external finance is costly, the firm holds a liquid (cash) reserve to help survive periods of poor business conditions. Holding liquid assets inside the...
Persistent link: https://www.econbiz.de/10005123584
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Why Do Companies Go Public? An Empirical Analysis
Pagano, Marco; Panetta, Fabio; Zingales, Luigi - C.E.P.R. Discussion Papers - 1996
This paper empirically analyses the determinants of an initial public offering (IPO) and the consequences of this decision on a company's investment and financial policy. We compare both the ex-ante and the ex-post characteristics of IPOs with those of a large sample of privately held companies...
Persistent link: https://www.econbiz.de/10005123719
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Equity Block Transfers in Transition Economies: Evidence from Poland
Trojanowski, Grzegorz - C.E.P.R. Discussion Papers - 2002
This Paper investigates valuation effects of share block transfers and employs agency theory to explain the …
Persistent link: https://www.econbiz.de/10005124379
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Go Public or Stay Private: A Theory of Entrepreneurial Choice
Boot, Arnoud W A; Gopalan, Radhakrishnan; Thakor, Anjan - C.E.P.R. Discussion Papers - 2004
In this Paper we analyse an entrepreneur/manager’s choice between private and public ownership in a setting in which management needs some ‘elbow room’ or autonomy to manage the firm optimally. In public capital markets, the corporate governance regime in place exposes the firm to...
Persistent link: https://www.econbiz.de/10005136725
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Long Term Changes in Voting Power and Control Structure following the Unification of Dual Class Shares
Lauterbach, Beni; Yafeh, Yishay - C.E.P.R. Discussion Papers - 2009
We follow the evolution of ownership structure in a sample of 80 Israeli companies that unified their dual-class shares in the 1990s, and compare it with a control sample of firms that maintained their dual share structure at least until 2000. Our main findings are as follows. First, controlling...
Persistent link: https://www.econbiz.de/10005000444
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Local Ownership as Private Information: Evidence on the Monitoring-Liquidity Trade-Off
Gaspar, José-Miguel; Massa, Massimo - C.E.P.R. Discussion Papers - 2004
This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its shares, and on its stock price. Building on the literature showing that local mutual funds (funds holding geographically close firms) enjoy superior returns due to private...
Persistent link: https://www.econbiz.de/10005497985
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The Economic Value of Flexibility When There is Disagreement
Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003
We develop an economic theory of ‘flexibility’, which we interpret as the discretion or ability to make a decision that …
Persistent link: https://www.econbiz.de/10005114187