Seasoned equity offerings and corporate financial management

Seasoned equity offerings and corporate financial management

We assume executives managing corporate financial policy consider the firm's current and target leverage, investment plans, anticipated cash flows, and consequences of alternative sequences of financing transactions, operating within efficient markets. Our analysis yields time-series and cross-...

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Bibliographic Details
Main Authors: BARCLAY, Michael J., FU, Fangjian, SMITH, Clifford W.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2021
Subjects:
Capital structure
Seasoned equity offerings
Financial management
Tradeoff
Pecking-order
Market-timing
Corporate Finance
Finance and Financial Management
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/6994
https://ink.library.smu.edu.sg/context/lkcsb_research/article/7993/viewcontent/Seasoned_equity_offerings_corporate_financial_management_sv.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:We assume executives managing corporate financial policy consider the firm's current and target leverage, investment plans, anticipated cash flows, and consequences of alternative sequences of financing transactions, operating within efficient markets. Our analysis yields time-series and cross-sectional predictions for management of investment spending and leverage; use of maturity, priority, and convertibility covenants; and management of dividends, share repurchases, cash balances, and credit lines. Our evidence from 8608 SEOs covering 1970–2015 is consistent with implications of our theory, helps to resolve an array of issues in corporate finance, and offers a step toward a more unified analysis of rational corporate financial management.

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