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Record W2112817613 · doi:10.5539/ijef.v7n10p31

When Do Firms Issue New Equity? Evidence from the UK

2015· article· en· W2112817613 on OpenAlexvenueno aff
Heba Ali

Bibliographic record

VenueInternational Journal of Economics and Finance · 2015
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Finance and Governance
Canadian institutionsnot available
Fundersnot available
KeywordsInitial public offeringAdverse selectionEquity (law)Stock (firearms)EconomicsBusinessStock marketMonetary economicsStock exchangeFinancial economicsFinance

Abstract

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Earlier evidence has shown that there are substantial time-varying fluctuations in the issuance activity of IPOs and SEOs. Utilizing a comprehensive dataset of 3054 IPOs and 2853 rights issues launched on the London Stock Exchange (LSE) during the time periods (1987-2007) and (1975-2007) respectively, this study aims to conduct a comprehensive analysis of the main alternative determinants of timing of IPOs and rights issues in a unified framework. Three main theories are tested: (i) favorable business and economic conditions; (ii) stock market conditions: bull market timing versus behavioral timing, and (iii) decreasing adverse selection costs and information spill-over. This study explicitly deals with the methodological and econometric challenges associated with modeling the IPOs and rights issues as time-series non-negative count variables via using auto-regressive Poisson model. The findings are significantly consistent with the adverse selection story; firms tend to make more equity offerings during periods of reduced asymmetric information and market uncertainty, robust to the data frequency and variables tested. These findings stand in line with Gerbich (1996) for UK IPOs and Lowry and Schwert (2002) for US IPOs. For rights issues, the findings exhibit that UK seasoned firms tend to time their offerings mostly during periods of bull stock prices, which is consistent with Michailides (2000) for UK rights issues.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.014
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.056
Threshold uncertainty score0.111

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0010.014
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0020.003
Science and technology studies0.0000.001
Scholarly communication0.0020.002
Open science0.0000.001
Research integrity0.0010.000
Insufficient payload (model declined to judge)0.0060.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.060
GPT teacher head0.260
Teacher spread0.200 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2015
Admission routes1
Has abstractyes

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