Cross‐Country Variability in Cost of Raising Equity: Evidence from Seasoned Equity Offerings. (30th May 2018)
- Record Type:
- Journal Article
- Title:
- Cross‐Country Variability in Cost of Raising Equity: Evidence from Seasoned Equity Offerings. (30th May 2018)
- Main Title:
- Cross‐Country Variability in Cost of Raising Equity: Evidence from Seasoned Equity Offerings
- Authors:
- Gupta, Manu
Prakash, Puneet
Rangan, Nanda K. - Abstract:
- Abstract: We examine how county‐level governance affects the cost of raising equity. Using data on seasoned equity offerings, we find that the underwriting spread is determined by the litigation risk of issue certifiers, and offer underpricing is largely determined by the investment risk of the equity issue. Underwriting spread increases with enhanced legal enforcement, offsetting the reduction in underpricing associated with strong legal enforcement. Our study offers insight into the effect of legal enforcement and regulatory policy on the cost of raising equity.
- Is Part Of:
- International review of finance. Volume 19:Number 4(2019:Dec.)
- Journal:
- International review of finance
- Issue:
- Volume 19:Number 4(2019:Dec.)
- Issue Display:
- Volume 19, Issue 4 (2019)
- Year:
- 2019
- Volume:
- 19
- Issue:
- 4
- Issue Sort Value:
- 2019-0019-0004-0000
- Page Start:
- 821
- Page End:
- 850
- Publication Date:
- 2018-05-30
- Subjects:
- Finance -- Periodicals
Financial institutions -- Periodicals
332.673 - Journal URLs:
- http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-2443 ↗
http://onlinelibrary.wiley.com/ ↗
http://www.blackwell-synergy.com/servlet/useragent?func=showIssues&code=irfi ↗ - DOI:
- 10.1111/irfi.12201 ↗
- Languages:
- English
- ISSNs:
- 1369-412X
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 4547.155000
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British Library HMNTS - ELD Digital store - Ingest File:
- 12434.xml