Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/153620
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dc.contributor.authorKang, Jun-Kooen_US
dc.contributor.authorPark, James L.en_US
dc.date.accessioned2022-01-07T01:14:28Z-
dc.date.available2022-01-07T01:14:28Z-
dc.date.issued2021-
dc.identifier.citationKang, J. & Park, J. L. (2021). Private placements of equity and firm value : value enhancing or value destroying?. Journal of Financial and Quantitative Analysis, 56(6), 2072-2102. https://dx.doi.org/10.1017/S0022109020000599en_US
dc.identifier.issn0022-1090en_US
dc.identifier.urihttps://hdl.handle.net/10356/153620-
dc.description.abstractThis paper reassesses two conflicting hypotheses on the valuation impacts of private placements of equity (PPEs), the monitoring/certification hypothesis and the managerial entrenchment hypothesis, by focusing on the shareholder approval, active buyer, and premium pricing features of PPEs. We find that PPEs with these features have significant positive announcement returns and insignificant mean long-run returns, while the corresponding announcement and long-run returns for PPEs without such features are significantly negative. Firms with value-enhancing PPE features are better governed and use proceeds more efficiently. Thus, the heterogeneous nature of PPEs helps reconcile the puzzling return patterns and conflicting hypotheses regarding PPEs.en_US
dc.language.isoenen_US
dc.relation.ispartofJournal of Financial and Quantitative Analysisen_US
dc.rights© 2020 The Author(s). All rights reserved. This paper was published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington in Journal of Financial and Quantitative Analysis and is made available with permission of The Author(s).en_US
dc.subjectBusiness::Financeen_US
dc.titlePrivate placements of equity and firm value : value enhancing or value destroying?en_US
dc.typeJournal Articleen
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.identifier.doi10.1017/S0022109020000599-
dc.description.versionPublished versionen_US
dc.identifier.scopus2-s2.0-85094150168-
dc.identifier.issue6en_US
dc.identifier.volume56en_US
dc.identifier.spage2072en_US
dc.identifier.epage2102en_US
dc.subject.keywordsCorporate Governanceen_US
dc.subject.keywordsAgency Costsen_US
dc.description.acknowledgementPark acknowledges financial support from the Asian Institute of Corporate Governance (AICG) and Korea University Business School Research Grant.en_US
item.fulltextWith Fulltext-
item.grantfulltextembargo_20221007-
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