Seasoned equity offerings by small and medium-sized enterprises

Carpentier, Cécile; L’Her, Jean-François; Suret, Jean‐Marc

doi:10.1007/s11187-010-9271-x

Cited by 15 publications

(3 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Cette situation a permis d'analyser des taux de rendement suivant les divers types d'opérations de financement par des entreprises définies comme des PME selon l'Union européenne. Les émissions initiales (Carpentier, Cumming et Suret, 2012), les entrées en bourse par prise de contrôle inversée , les émis-sions subséquentes (Carpentier, L'Her et Suret, 2012) et les placements privés procurent des rendements moyens anormalement négatifs. Pour modéliser ces rendements correctement, il faut tenir compte d'autres facteurs de risque tels que la taille, les possibilités de croissance et la propension aux investissements .…”

Section: Les Taux Réalisés Sur Les Marchés Publics De Petite Capitaliunclassified

Le coût du capital entrepreneurial

Carpentier

Suret

2011

Revue internationale P.M.E.

Self Cite

View full text Add to dashboard Cite

Le coût du financement par les fonds propres (coût du capital) est un élément essentiel de l’évaluation de l’entreprise, mais aussi des opérations de financement et de l’analyse des projets. Toutefois, estimer le coût du capital entrepreneurial est un exercice extrêmement difficile. Les modèles classiques de la finance, adaptés aux grandes entreprises, ne peuvent pas s’appliquer dans ce cadre particulier. Les données de marché, essentielles aux estimations, sont inexistantes. Nous présentons, illustrons et critiquons les principales méthodes proposées en la matière. Nous proposons par ailleurs la seule estimation récente des primes de taille applicable à des entreprises de très faible capitalisation. Ni les pratiques ni les modèles théoriques ne fournissent actuellement de solution satisfaisante au problème de l’estimation du coût du capital entrepreneurial. Nous suggérons donc plusieurs avenues de recherche visant à mieux comprendre et estimer ce coût.The equity cost of capital is crucial to business valuation, financing operations and project analyses, yet assessing this cost is very difficult. Classic financial models fit large firms well, but are not applicable to this context. Market data, which are pivotal to the estimates, are lacking. We present, illustrate and discuss the main methods proposed to assess the entrepreneurial equity cost. We also propose the only recent size premium estimates adapted to firms with very small market capitalization. Currently, neither practices nor the theoretical models solve the entrepreneurial equity cost measurement problem adequately. We therefore suggest research avenues to better understand and estimate this cost.El costo del capital propio es una parte esencial de la evaluación de la empresa, pero también de las operaciones de financiación y el análisis de los proyectos. Sin embargo, evaluar el costo del capital empresarial es muy complicado. Los modelos clásicos en finanzas, adaptados para las grandes empresas, no pueden aplicarse a este contexto particular. Los datos de mercado, esenciales para las estimaciones, no existen. Presentamos, ilustramos y criticamos los principales métodos propuestos en este campo. Proponemos además la única estimación reciente de las primas de tamaño aplicable a empresas de capitalización muy baja. Las prácticas y los modelos teóricos actuales no brindan soluciones convenientes al problema de la estimación del costo del capital empresarial. Por lo tanto, recomendamos varias opciones de exploración orientadas a comprender y estimar mejor dicho costo.Die Eigenkapitalkosten sind ein wesentliches Element zur Bewertung von Unternehmen und von Projekten. Die Bewertung der Kapitalkosten bei Unternehmensgründungen hingegen ist als extrem schwierig zu bezeichnen. Klassische Finanzierungsmodelle, gedacht für Grossunternehmen, eigenen sich nicht für den speziellen unternehmerischen Kontext. Marktdaten, essentiell zur Bewertung, sind schlicht nicht verfügbar. Wir präsentieren, illustrieren und kritisieren die bedeutendsten Bewertungsansätze. Weder d...

show abstract

Section: Les Taux Réalisés Sur Les Marchés Publics De Petite Capitaliunclassified

Le coût du capital entrepreneurial

Carpentier

Suret

2011

Revue internationale P.M.E.

Self Cite

View full text Add to dashboard Cite

show abstract

“…Table 1 summarises US and international evidence on long-run SEO performance using buy-and-hold abnormal returns. Underperformance ranges from −9.0% over three years for German SEOs from 1960(Stehle et al, 2000 to −53.3% over three years for Canadian SEOs from 1993(Carpentier et al, 2010 and to −59.4% over five years for US SEOs from 1970-1990(Loughran and Ritter, 1995.…”

Section: Previous Literature and Development Of The Underreaction Hypmentioning

confidence: 99%

Managers’ Private Information, Investor Underreaction and Long‐Run SEO Performance

Bilinski

Strong

2011

Euro Fin Management

View full text Add to dashboard Cite

show abstract

“…First, the paper adds to the literature on SME exchanges. As noted by Alderighi et al (2017), studies on SME exchanges are few and only a handful of papers provide empirical results-mostly mixed-by directly examining the companies listed on the exchange (e.g., Carpentier et al, 2010Carpentier et al, , 2012Gerakos et al, 2013). To this, we add two things.…”

Section: Introductionmentioning

confidence: 99%

Does the SME Exchange Properly Function as a “Growth Market”? A Look Through its Correlation with Private-Firm Growth

Choi¹,

Lee²

2019

KJFS

View full text Add to dashboard Cite

< Abstract > This paper evaluates whether a stock exchange targeted specifically at SMEs, namely, the SME exchange, functions as a "growth market" by capitalizing industry growth opportunities into stock prices. To this end, we examine the correlation between the SME exchange prices-aggregated up to the industry level-and private-firm growth. That is, we use the growth of private firms in an industry as a proxy for industry growth options that the SME exchange prices need to embody. Using data from Korea whose SME exchange is one of the largest in the world, we find that the SME exchange prices are positively correlated with the growth of private firms, especially when they are small in size, they belong to a growing industry, or their growth is funded by equity. In the same regression, the main board stock prices are correlated with the liability-funded growth of large-size private firms in a mature industry. Taken together, our results suggest that the SME exchange plays a positive and complementary role in the economy by embodying the type of industry growth opportunities that are not readily represented by the main board stock prices.Does the SME Exchange Properly Function as a "Growth Market"? 4682) The main board in Korea is called KOSPI. To avoid confusion, we use the term "main board" to refer to KOSPI, and continue to use the term "SME exchange" for KOSDAQ.3) See, for example, WFE (2016) for the positive aspects of the Korean SME exchange. In Section 2, we also provide the exchange's institutional details.

show abstract

Seasoned equity offerings by small and medium-sized enterprises

Cited by 15 publications

References 44 publications

Le coût du capital entrepreneurial

Le coût du capital entrepreneurial

Managers’ Private Information, Investor Underreaction and Long‐Run SEO Performance

Does the SME Exchange Properly Function as a “Growth Market”? A Look Through its Correlation with Private-Firm Growth

Contact Info

Product

Resources

About