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

1 Scopus Citations
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Author(s)

  • Marco Bigelli
  • Vikas Mehrotra
  • Randall Morck
  • Wayne Yu

Detail(s)

Original languageEnglish
Pages (from-to)297-308
Journal / PublicationJournal of Management and Governance
Volume2
Issue number4
StatePublished - Dec 1998
Externally publishedYes

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; Yu, Wayne.

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