Eckbo, B. Espen; Norli, Øyvind - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2004
Extending the Myers and Majluf (1984) framework, we present a model for the choice of seasoned-equity selling mechanism. A sequential pooling equilibrium exists which implies a positive market reaction to certain flotation strategies. We examine the model implications using the market reaction...