Private placements of equity and firm value : value enhancing or value destroying?

• Main Authors: Kang, Jun-Koo, Park, James L.
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2022
• Subjects: Business::Finance; Corporate Governance; Agency Costs
• Online Access: https://hdl.handle.net/10356/153620
• Institution: Nanyang Technological University

This 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 t...