Fodor, Andy; Gokkaya, Sinan - In: Journal of Banking & Finance 47 (2014) C, pp. 88-101
The structure of a firm-commitment Seasoned Equity Offering (SEO) resembles a put-option underwritten by an investment bank syndicate (Smith, 1977). Employing implied volatilities from issuers’ stock options as a direct forward-looking measure, this paper examines the impact of expected price...