Algorithmic trading and changes in firms equity capital

Algorithmic trading and changes in firms equity capital

We use a large sample from 2001 to 2009 that incorporates intraday transactions data from 39 exchanges and an average of 12,800 different common stocks to assess the effect of algorithmic trading (AT) on firms’ capital raising activities. Greater AT reduces net equity issues over the next year, but...

Full description

Saved in:
Bibliographic Details
Main Authors: BOEHMER, Ekkehart, FONG, Kingsley, WU, Julie
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2012
Subjects:
Algorighmic trading
high frequency trading
capital raising
security issues
Finance and Financial Management
Real Estate
Technology and Innovation
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5301
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6300/viewcontent/SSRN_id2050856.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
Description
Summary:We use a large sample from 2001 to 2009 that incorporates intraday transactions data from 39 exchanges and an average of 12,800 different common stocks to assess the effect of algorithmic trading (AT) on firms’ capital raising activities. Greater AT reduces net equity issues over the next year, but this is only partly driven by AT’s effect on proceeds from new securities issues. Our findings suggest that the main driver of this relationship is AT’s effect on share repurchases.

Similar Items