The performance of Japanese seasoned equity offerings, 1971-1992
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 395-425 |
Journal / Publication | Pacific Basin Finance Journal |
Volume | 6 |
Issue number | 5 |
Publication status | Published - Nov 1998 |
Link(s)
Abstract
Japanese firms conducting 1389 seasoned equity offerings during 1971-1992 significantly underperform various benchmarks over a subsequent 5-year period. This poor stock performance is accompanied by a deterioration of the matching-firm adjusted operating performance. Neither Keiretsu affiliation nor ownership structure can explain the poor performance by issuing firms. In contrast to evidence from the U.S., cross-sectional variation of post-issue performance changes is not related to the level of agency costs prior to the issue. Our results from the Japanese financial markets are inconsistent with an agency explanation for the new issues puzzle.
Research Area(s)
- F21, G15, G32, G38, Japanese seasoned equity offerings, Long run performance, Operating measures, Ownership structure
Citation Format(s)
The performance of Japanese seasoned equity offerings, 1971-1992. / Cai, Jun; Loughran, Tim.
In: Pacific Basin Finance Journal, Vol. 6, No. 5, 11.1998, p. 395-425.
In: Pacific Basin Finance Journal, Vol. 6, No. 5, 11.1998, p. 395-425.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review