Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (61)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Korajczyk, R. A.
Right arrow Articles by McDonald, R. L.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Rev Fin 1991; 4:685-708
© 1991 the Society for Financial Studies

Article

The effect of information releases on the pricing and timing of equity issues

RA Korajczyk1, DJ Lucas2 and RL McDonald2
1 Kellogg Graduate School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208-2006, USA
2 Northwestern University and National Bureau of Economic Research

Abstract

With time-varying adverse selection in the market for new equity issues, firms will prefer to issue equity when the market is most informed about the quality of the firm. This implies that equity issues tend to follow credible information releases. In addition, if the asymmetric in information increases over time between information releases, the price drop at the announcement of an equity issue should increase in the time since the last information release. Using earning releases as a proxy for informative events, we find evidence supporting these propositions.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 REV FINANC STUDHome page
M. J. Garmaise and T. J. Moskowitz
Confronting Information Asymmetries: Evidence from Real Estate Markets
Rev. Financ. Stud., April 1, 2004; 17(2): 405 - 437.
[Abstract] [Full Text] [PDF]


Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.