摘要:

AbstractThe underpricing of initial public offerings (IPOs) of equity represents a well‐documented empirical phenomenon. One prominent explanation for this underpricing relies on the uncertainty investors feel about the value of the issuer. In this paper, this asymmetric information hypothesis is tested by examining the underpricing of IPOs of seventy‐four firms for which the uncertainty about the value of the firm is likely to be substantially reduced. These firms were once publicly owned, then taken private, and subsequently returned to public ownership. Findings show that the IPOs of these “reverse leveraged buyouts” are significantly less underpriced than typical IPOs. These results support the asymmetric information hyp

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00512.x

年代:1989

数据来源: WILEY

摘要:

AbstractIn this paper, the pricing of initial public offerings (IPOs) is examined from the underwriter's point of view. It is shown that because of the regulations and procedures governing the underwriting and pricing of IPOs, underwriters can maximize expected income by underpricing IPOs. Thus, it is argued that in addition to other feasible explanations of the underpricing phenomenon (e.g., compensation to uninformed investors, insurance against legal liability, etc.), regulatory and procedural factors contribute to the underpricing of IPOs. This is shown to be true both when uninformed investors are present and absent from the market for IPOs.

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00513.x

年代:1989

数据来源: WILEY

摘要:

AbstractMunicipal bond market studies testing for the effect of a call provision on new‐issue borrowing cost fail to examine if the cost of the call provision is sensitive to expected changes in interest rates. This may explain why some studies find that the presence of a call provision increases municipal borrowing costs while others find no effect. Another possible reason for the contradictory findings may be a failure to correct for a self‐selection bias that results when some issuers choose to include a call provision and others do not. To correct for the potential self‐selection problem, a two‐stage probit switching regression technique is used here to estimate the cost of a call provision to municipal issuers. Results indicate municipal issuers pay a premium for the call privilege at the time of issue and that the size of the premium is sensitive to expected changes in interes

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00514.x

年代:1989

数据来源: WILEY

摘要:

AbstractIn this study, the impact of security issuance by bank holding companies is examined in light of two hypotheses: the regulation or asymmetry reduction hypothesis and the bank capital hypothesis. Announcements of the issuance of common stock are associated with a significant negative effect, and the magnitude of this effect is similar to that found previously for utilities and smaller than that found for industrial firms. The market does not appear to treat subordinated debt announcements as similar to equity, although the debt qualifies as “capital” for regulatory purposes. Cross‐sectional regressions do not support asymmetric information models where all unexpected external announcements are viewed negatively. Rather, the type of security being issued is an important determinant of the announcement e

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00515.x

年代:1989

数据来源: WILEY

摘要:

AbstractCurrently, municipal bonds insured by major insurance firms receive the highest credit rating from rating agencies. The interest rates on regular triple‐A municipal bonds, however, have been persistently below those of insured bond issues. The yield spread between insured and uninsured triple‐A bonds in the tax‐exempt market is examined here, and it is shown that the yield spread may be attributable to split ratings and default‐relate

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00516.x

年代:1989

数据来源: WILEY

摘要:

AbstractResearchers have debated stock market efficiency for years and have found several apparent anomalies, among them the overreaction investment strategy. In a sample of virtually all AMEX and NYSE stocks over twenty‐one years, it is demonstrated that abnormal returns earned in one year are positively related to the abnormal returns earned in the next year. This evidence is contrary to the overreaction investment philosoph

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00517.x

年代:1989

数据来源: WILEY

摘要:

AbstractIn this paper, the distribution of equity returns on the Tokyo Stock Exchange is examined from 1965 to 1984, and significant and persistent skewness and kurtosis are found. The deviation of security returns from normality declines with increasing portfolio size and appears to be greater than the non‐normality evidenced in U.S. security returns. Further, these deviations from normality persist even after controlling for January and firm size effect

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00518.x

年代:1989

数据来源: WILEY

摘要:

AbstractThe forecast errors arising from security analysts' predictions of commercial bank earnings are investigated here and compared with the earnings forecast errors associated with savings and loans, other financial services organizations, and a random sample of nonfinancial firms from 1976 to 1986. Although bank earnings forecast errors did increase over 1976–1986, analyses suggest that the rise was less than at other industries considered in the study. The increase in forecast errors appears to be centered at multinational banking organizations, with only limited increases in earnings forecast errors at regional bank

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00519.x

年代:1989

数据来源: WILEY

ISSN:0270-2592    

DOI:10.1111/j.1475-6803.1989.tb00511.x

年代:1989

数据来源: WILEY