The Proportion Underwritten and the Reaction to SEOs: UK Tests of the Eckbo-Masulis Theory
dc.contributor.author
Armitage, Seth
en
dc.date.accessioned
2007-08-15T08:17:40Z
dc.date.available
2007-08-15T08:17:40Z
dc.date.issued
1999
dc.description.abstract
The Eckbo-Masulis (1992) theory predicts that a seasoned offer is more likely to be underwritten the higher the proportion of shares expected to be sold to new investors and further predicts a negative relation between abnormal returns on announcement and sales to new investors. The evidence in this paper does not support these predictions. The proportion underwritten is determined primarily by the proportion of shares sold before the issue is announced, not by the proportion sold to new investors. The event study reveals a clear negative relation between abnormal returns and depth of offer price discount but not sales to new investors.
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dc.format.extent
74905 bytes
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dc.format.mimetype
application/pdf
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dc.identifier.uri
http://hdl.handle.net/1842/1865
dc.language.iso
en
dc.publisher
Management School and Economics. The University of Edinburgh
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dc.relation.ispartofseries
CFMR
en
dc.relation.ispartofseries
99.02
en
dc.subject
Economics
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dc.title
The Proportion Underwritten and the Reaction to SEOs: UK Tests of the Eckbo-Masulis Theory
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dc.type
Working Paper
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