Loderer, Claudio; Cooney, John W.; Van Drunen, Leonard D. (1991). The price elasticity of demand for common stock. Journal of Finance, 46(2), pp. 621-651. Wiley 10.1111/j.1540-6261.1991.tb02677.x
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1991 The Price Elasticity of Demand for Common Stock.pdf - Accepted Version Restricted to registered users only Available under License Publisher holds Copyright. Download (3MB) |
We study the price elasticity of demand for the common stock of an individual corporation. Despite the prevelance of assumptions that demand is perfectly elastic, there is little if any direct evidence in the literature to either support or reject that contention. Consistent with the notion of finite price elasticities, we find that the announcement of primary stock oferings by regulated firms depresses their stock prices and little if any evidence that this decline is the result of adverse information about future cash flows. Attempts to relate offer announcement effects directly to possible determinants of price elasticities, however, are inconclusive.
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: |
0022-1082 |
Publisher: |
Wiley |
Language: |
English |
Submitter: |
Karin Dolder |
Date Deposited: |
24 Jan 2014 09:18 |
Last Modified: |
05 Dec 2022 14:27 |
Publisher DOI: |
10.1111/j.1540-6261.1991.tb02677.x |
BORIS DOI: |
10.7892/boris.39540 |
URI: |
https://boris.unibe.ch/id/eprint/39540 |
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