Private Placement of Common Equity and Earnings Expectations
Earnings forecast revisions by analysts subsequent to the announcement of private equity placements are examined. Results show that analysts make significant upward revisions to their forecasts for current-year earnings. Furthermore, these forecast revisions are significantly related to announcement...
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Institutional Knowledge at Singapore Management University
1999
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sg-smu-ink.lkcsb_research-32002021-04-15T04:01:34Z Private Placement of Common Equity and Earnings Expectations GOH, Jeremy C. Gombola, Michael LEE, Hai Wei LIU, Feng Ying Earnings forecast revisions by analysts subsequent to the announcement of private equity placements are examined. Results show that analysts make significant upward revisions to their forecasts for current-year earnings. Furthermore, these forecast revisions are significantly related to announcement-period abnormal returns, but not to the risk changes accompanying the equity placement. These findings are consistent with the information hypothesis, which suggests that private equity placements convey favorable information about future earnings. 1999-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/2201 info:doi/10.1111/j.1540-6288.1999.tb00460.x https://ink.library.smu.edu.sg/context/lkcsb_research/article/3200/viewcontent/j.1540_6288.1999.tb00460.x.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University equity offerings private placements earnings forecast information signalling Business Corporate Finance Portfolio and Security Analysis |
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equity offerings private placements earnings forecast information signalling Business Corporate Finance Portfolio and Security Analysis GOH, Jeremy C. Gombola, Michael LEE, Hai Wei LIU, Feng Ying Private Placement of Common Equity and Earnings Expectations |
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Earnings forecast revisions by analysts subsequent to the announcement of private equity placements are examined. Results show that analysts make significant upward revisions to their forecasts for current-year earnings. Furthermore, these forecast revisions are significantly related to announcement-period abnormal returns, but not to the risk changes accompanying the equity placement. These findings are consistent with the information hypothesis, which suggests that private equity placements convey favorable information about future earnings. |
format |
text |
author |
GOH, Jeremy C. Gombola, Michael LEE, Hai Wei LIU, Feng Ying |
author_facet |
GOH, Jeremy C. Gombola, Michael LEE, Hai Wei LIU, Feng Ying |
author_sort |
GOH, Jeremy C. |
title |
Private Placement of Common Equity and Earnings Expectations |
title_short |
Private Placement of Common Equity and Earnings Expectations |
title_full |
Private Placement of Common Equity and Earnings Expectations |
title_fullStr |
Private Placement of Common Equity and Earnings Expectations |
title_full_unstemmed |
Private Placement of Common Equity and Earnings Expectations |
title_sort |
private placement of common equity and earnings expectations |
publisher |
Institutional Knowledge at Singapore Management University |
publishDate |
1999 |
url |
https://ink.library.smu.edu.sg/lkcsb_research/2201 https://ink.library.smu.edu.sg/context/lkcsb_research/article/3200/viewcontent/j.1540_6288.1999.tb00460.x.pdf |
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