Čornanič, Aleš; Novák, Jiri - 2013
signal their quality to the outside investors and to issue seasoned equity (SEO) at more favorable terms. While the initial … IPOs are more likely (i) to issue seasoned equity, (ii) to issue a larger portion of equity at the SEO, and (iii) to make … the SEO sooner after the IPO, all of which are consistent with the signaling hypothesis. This evidence suggests that the …