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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Main Authors: GOH, Jeremy C., Gombola, Michael, LEE, Hai Wei, LIU, Feng Ying
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 1999
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Online Access: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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Institution: Singapore Management University
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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic equity offerings
private placements
earnings forecast
information signalling
Business
Corporate Finance
Portfolio and Security Analysis
spellingShingle 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
description 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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