Seasoned equity offerings (SEOs) are sales of stock after the initial public offering. They are a means to raise funds through the sale of stock rather than the issuance of additional debt. We propose a method to predict the characteristics of firms that undertake this form of financing. Our procedure is based on logistic regression where firm-specific variables are obtained from the perspectiv...

Insignificant stock market reactions to debt issues have been well documented in the finance literature. This paper segments debt issues into callable/noncallable and long-term/short-term categories, as well as anticipated and unanticipated issues (8 different categories of debt). A logit model was used to classify the debt issues into anticipated and unanticipated categories. Stock market reac...

It is well established that equity issuance for most non-financial firms is procyclical. This paper shows that, in contrast, equity issuance for banks is countercyclical across credit cycles after 1980, as is retained income. Thus, during credit booms, banks raise less equity, even though more equity might help banks better absorb shocks. This paper shows that government guarantees play a cruci...

The Sukuk market has become the fastest growing segment of the Islamic financial services industry. Governments and other corporate entities have started tapping the local and international Sukuk markets in order to raise the required funds. The investor base is also expanding and Sukuk has now become a popular and obvious choice for retail investors in a number of jurisdictions. However, becau...

• issuance of 147,000,000 privatization checks (vouchers) as freely transferable bearer securities, accepted by the State as payment for shares of privatized enterprises (huge educational effect, redistribution of ownership and creation of the securities market); • massive transformation of state-owned enterprises into joint-stock companies and issue of shares of privatized enterprises; • vouch...

ABSTRACT We investigate whether firms manage stock prices in anticipation of share issuance. Warrant exercise results issuance and warrant expiration dates are fixed years advance, which precludes market timing. predict to prevent (induce) when is dilutive (anti-dilutive) existing shareholders. To test our prediction, we examine returns around dates. find that the difference between out-of-the-...

the latest instrument in islamic financial market is sukuk securities.   sukuk is a flexible stock securities that can meet the financial needs of firms in the capital markets. however, sukuk is considered as an alternative investment securities for bonds that receive usury which is forbidden in islam. the growth of  sukuk market in recent years, mainly due to its role in monitoring and control...

This paper presents a political economy model where there is mutual feedback between investor protection and stock market development. Better investor protection induces companies to issue more equity and thereby leads to a broader stock market. In turn, equity issuance expands the shareholder base and increases support for shareholder protection. This feedback loop can generate multiple equili...