Seasoned Equity Offerings, Overvaluation, and Timing

Jindra, Jan

doi:10.2139/ssrn.216010

Cited by 24 publications

(20 citation statements)

References 45 publications

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“…Our results are qualitatively unchanged using this alternative measure of overvaluation. 21 Ritter and Warr (2001), Chang et al (1999), Lee et al (1999), D'Mello andShroff (2000), and Jindra (2000) show that the residual income model tends to consistently undervalue stocks (i.e., that there is a positive VE). 22 The comparison of acquirer valuation errors with those of industry-and-size-matched firms in the same year also allows us to differentiate between aggregate stock market misvaluation and the misvaluation due to firm-level information asymmetry.…”

Section: Sample Selection and Datamentioning

confidence: 99%

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The medium of exchange in acquisitions: Does the private information of both acquirer and target matter?

Chemmanur

Paeglis

Simonyan

2009

Journal of Corporate Finance

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Section: Sample Selection and Datamentioning

confidence: 99%

“…We implement the residual income model (see Ohlson, 1990) following the set-up used by D' Mello and Shroff (2000) and Jindra (2000):…”

Section: The Residual Income Modelmentioning

confidence: 99%

The medium of exchange in acquisitions: Does the private information of both acquirer and target matter?

Chemmanur

Paeglis

Simonyan

2009

Journal of Corporate Finance

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“…Lowry andSchwert, 2003, or Ritter andWelch, 2002), the empirical literature on when and why companies go public is scarce. Cross-sectional data (for Italian firms) was used by Zingales (1996, 1998) or Jindra (2000), who analyzed the SEO decision of listed U.S. firms. A pooled cross-section of selected European countries was employed by Rydqvist and Högholm (1995), Breinlinger and Glogova (2002) examine a panel of six European countries.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…In the context of SEOs, the cross-section results of Jindra (2000) suggest that firms are more likely to issue seasoned equity when their shares are overvalued by the market (with respect to managers' private information). This is in line with the results of Graham and Harvey (2001) who find a large percentage of companies to be hesitant in issuing common equity because they feel their stock is undervalued.…”

Section: Stock Market Conditions and Equity Issuancementioning

confidence: 99%

When and why do Austrian companies issue shares?

Burgstaller¹

2008

Empirica

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper examines the issuance of share capital via the Vienna Stock Exchange between 1985 and 2004. Evidence is supplied concerning the aggregate factors that explain the time-series variation in both the numbers of and proceeds from initial public offerings (IPOs) and seasoned equity offerings (SEOs). Results indicate that there is no cyclical sensitivity of issues, but that firms successfully time their offerings to take advantage of high stock market valuations and the associated low cost of equity capital. Corporate indebtedness and interest rates are significant determinants of SEOs in statistical and economic terms. The proceeds from IPOs, rather than funds raised by firms that are already listed, are used to finance subsequent investment. Terms of use: Documents in D DE EP PA AR RT TM ME EN NT T O OF F E EC CO ON NO OM MI IC CS S J JO OH HA AN NN NE ES S K KE EP PL LE ER R U UN NI IV VE ER RS SI IT TY Y O OF F L LI IN NZ Z Johannes Kepler University of Linz Department of Economics

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“…16 These studies include Chang (1999), Jindra (2000), Chen and Jindra (2001), Brown and Cliff (2002), Chen and Dong (2003). 53 49 45 41 37 33 29 25 21 17 13 9 5 1 57 53 49 45 41 37 33 29 25 21 17 13 9 5 1 57 53 49 45 41 37 33 29 25 21 17 13 9 5 1 57 53 49 45 41 37 33 29 25 21 17 Because the accounting variables have high serial correlations, and because mispricing may not be directly comparable across time, a pooled regression over all sample periods is not appropriate here.…”

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confidence: 99%

A Generalized Earnings‐based Stock Valuation Model

Dong

Hirshleifer

2005

The Manchester School

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This paper provides a model for valuing stocks that takes into account the stochastic processes for earnings and interest rates. Our analysis differs from past research of this type in being applicable to stocks that have a positive probability of zero or negative earnings. By avoiding the singularity at the zero point, our earnings-based pricing model achieves improved pricing performance. The out-of-sample pricing performance of the generalized earnings valuation model (GEVM) and the Bakshi and Chen pricing model are compared on four stocks and two indices. The generalized model has smaller pricing errors and greater parameter stability. Furthermore, deviations between market and model prices tend to be mean-reverting using the GEVM model, suggesting that the model may be able to identify stock market misvaluation.

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Seasoned Equity Offerings, Overvaluation, and Timing

Cited by 24 publications

References 45 publications

The medium of exchange in acquisitions: Does the private information of both acquirer and target matter?

The medium of exchange in acquisitions: Does the private information of both acquirer and target matter?

When and why do Austrian companies issue shares?

A Generalized Earnings‐based Stock Valuation Model

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