Degree Granting Department
Scott Besley, D.B.A.
Barry Lin, Ph.D.
Christos Pantzalis, Ph.D.
Ninon Sutton, Ph.D.
Equity financing, Debt financing, Analyst coverage, Information asymmetry, Security offerings, Investor optimism
I investigate the impacts that information production, information asymmetry have on firms financing choices 3/4 equity financing or debt financing. I find that equity issue announcements encourage more information production than debt issue announcements, which in turn raises the probability of equity financing. In addition, the post-issue stock market performance is positively associated with information production. The results are robust after controlling for investor optimism. I also apply the Heckmans two-step procedure to jointly investigate firms financing choices and offering costs. I find that security-issuing firms choose the less-costly financing type.
Scholar Commons Citation
Yi, Bingsheng, "Two Essays on Security Offerings: Information Production, Investor Perception and The Types of External Financing, and A Unified Analysis on Financing Choices and Offering Costs" (2005). USF Tampa Graduate Theses and Dissertations.