The performance of Japanese seasoned equity offerings, 1971-1992

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)395-425
Journal / PublicationPacific Basin Finance Journal
Volume6
Issue number5
Publication statusPublished - Nov 1998

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.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review