Changes in management ownership and the valuation effects of equity offerings
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 297-308 |
| Journal / Publication | Journal of Management and Governance |
| Volume | 2 |
| Issue number | 4 |
| Publication status | Published - Dec 1998 |
| Externally published | Yes |
Link(s)
Abstract
Seasoned equity issues trigger share price declines, and this is usually interpreted as evidence of signalling. We find that seasoned equity issues also typically result in much lower managerial ownership in U.S. firms. Jensen and Meckling (1976) predict a stock price decline when managerial ownership falls. We conduct several tests to distinguish agency explanations form signalling explanations, and conclude that both effects are present. © 1999 Kluwer Academic Publishers.
Citation Format(s)
Changes in management ownership and the valuation effects of equity offerings. / Bigelli, Marco; Mehrotra, Vikas; Morck, Randall et al.
In: Journal of Management and Governance, Vol. 2, No. 4, 12.1998, p. 297-308.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
