Stock Market Liquidity and the Cost of Issuing Equity

By Alexander W. Butler, Gustavo Grullon, J. Weston. Journal of Financial and Quantitative Analysis, 2005

380 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

The Empirical Analysis of Liquidity (2014, background): “While the papers described above establish a link between stock liquidity and leverage, and Butler et al. [2005] document a link between underwriting fees and liquidity, Stulz et al.”
Can Managers Time the Market? Evidence Using Repurchase Price Data (2015, background): “…(1995, 2000a and b), and Peyer and Vermaelen (2009) present evidence consistent with market timing, while Eckbo, Masulis, and Norli (2000), Schultz (2003), Butler, Grullon, and Weston (2005), and Dittmar and Dittmar (2008) dispute the interpretation of these findings as evidence of market timing.”
Seasoned Equity Offerings: Quality of Accounting Information and Expected Flotation Costs (2009, neutral): “Share turnover: Butler et al. (2005) documents that higher liquidity is associated with lower SEO flotation costs and argue that greater stock liquidity should make an SEO easier to place.”
IPO underpricing and after-market liquidity (2006, background): “Butler, Grullon, and Weston (2005) examine seasoned equity issues and find that firms with more liquid shares pay lower investment banking fees and therefore raise capital at more advantageous terms.”