What Does the Market Learn from Stock Offering Revisions?

Galloway, Tina; Loderer, Claudio; Sheehan, Dennis P. (1998). What Does the Market Learn from Stock Offering Revisions? Financial Management, 27(1), pp. 5-16. Wiley

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We examine the disclosure of size revisions of seasoned stock offerings to see what information revisions impart to investros. Revisions could deliver firm-originated infoirmation, which discloses something managers know about the firm. Alternatively, they could disseminate market-originated information, which is information market participants have but which is not conveyed until trading takes place. Our results reject the notion that revisions reveal firm-originated news. Instead, the results are consistent with the market-originated news hypothesis and suggest a mechanism that investros and underwriters use to learn about the demand for an offering.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0046-3892

Publisher:

Wiley

Language:

English

Submitter:

Karin Dolder

Date Deposited:

09 Dec 2013 14:20

Last Modified:

31 Dec 2014 01:27

BORIS DOI:

10.7892/boris.39515

URI:

https://boris.unibe.ch/id/eprint/39515

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