When and why do Austrian companies issue shares?

Abstract

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

The Timing of Initial Public Offerings – Non-Numerical Model Based on Qualitative Trends

“…Consistent with these results are findings of a survey conducted by Burgstaller (2005). He examined public issues on the Vienna Stock Exchange between 1985 and 2004.…”

Is there still a Berlin Wall in the post-issue operating performance of European IPOs?

“…Moreover, it covers all the IPO activity that occurred in all European countries during the same period. Existing literature in this field mainly focuses on a specific country (e.g., Burgstaller [] in Austria, Huyghebaert and Van Hulle [] in Belgium, and Pagano, Panetta, and Zingales [] in Italy), with different methodologies and different time periods. This fact makes the comparison between them difficult, if not impossible.…”

Trends and Determinants of Primary Market Activities: Evidences from India

“…Similar evidences have been reported in several other studies as well. For instance, Ritter (1984); Loughran and Ritter (1995); Ritter and Welch (2002); Rajan and Servaes (1995)and Burgstaller (2003) documented that firms time the issue of equities to take advantage of favourable market conditions. However, hot issue market not necessarily coincide with urgent fund requirements or future investment opportunity (Loughran et al 1994).…”

“…It is usually more attractive for issuers to raise capital during the period of high stock market valuation due to the low cost of equity owing to the high investor optimism. Burgstaller (2009) found that prevailing interest rates and corporate indebtedness are significant determinants of seasoned equity offerings in both statistical and economic terms. Results of a survey with 336 CEOs conducted by Brau and Fawcett (2004) confirms that prevailing market condition plays a crucial role in timing the public offering.…”

“…Both sentiment and valuation of the market are reported to be insignificant in case of FPOs. Burgstaller (2009) found that prevailing interest rates and corporate indebtedness are significant determinants of seasoned equity offerings in both statistical and economic terms. However, the trend component is found to be statistically significant.…”