The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Equity Issues and Stock Price Dynamics
Open accessAbstract
This paper presents an information‐theoretic, infinite horizon model of the equity issue decision. The model predicts that (a) equity issues on average are preceded by an abnormal positive return on the stock, although for some firms the issue is preceded by a loss; (b) equity issues on average are preceded by an abnormal rise in the market; and (c) the stock price drops at the announcement of an issue. The model provides a measure of the welfare cost of asymmetric information; the welfare loss may be small even if the price drop at issue announcement is large.
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Citations
Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
Valuation effects of security offerings and the issuance process
Mikkelson, W. H., & Partch, M. M. (1986) · Journal of Financial Economics · doi:10.1016/0304-405x(86)90049-8 · Cited by 1,213
Cited by
Capital structure decisions: Which factors are reliably important?
Frank, M. Z., & Goyal, V. K. (2009) · Financial Management · doi:10.1111/j.1755-053x.2009.01026.x · Cited by 2,859
Initial public offerings: International insights
Loughran, T., Ritter, J. R., & Rydqvist, K. (1994) · Pacific-Basin Finance Journal · doi:10.1016/0927-538x(94)90016-7 · Cited by 1,254
Initial Public Offerings: An Analysis of Theory and Practice
BRAU, J. C., & FAWCETT, S. E. (2006) · The Journal of Finance · doi:10.1111/j.1540-6261.2006.00840.x · Cited by 837
Accounting conservatism and firm investment efficiency
García Lara, J. M., García Osma, B., & Penalva, F. (2016) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2015.07.003 · Cited by 659
Stock Market Efficiency and Economic Efficiency: Is There a Connection?
DOW, J., & GORTON, G. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb02726.x · Cited by 632
Metadata
- Authors
- LUCAS, D. J., & McDONALD, R. L.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1990-09
- Volume
- 45
- Issue
- 4
- Pages
- 1019-1043
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2024569236
- Cited by
- 648
- References
- 2
- FWCI
- 31.94
- Type
- journal article
- Language
- en
- Open access
- green
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- LUCAS, D. J., & McDONALD, R. L. (1990). Equity Issues and Stock Price Dynamics. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1990.tb02425.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
