Long‐Run Performance following Private Placements of Equity
By Mike Hertzel, Michael L. Lemmon, James S. Linck, Lynn L. Rees. 2002
351 citations recorded by the source corpus.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/a6b24a0b949ffd9148addad7752f823115d9d941
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In Accounting
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Citations in the corpus
- Business Groups and Tunneling: Evidence from Private Securities Offerings by Korean Chaebols (2006, background): “4 Hertzel et al. (2002), however, show that the stock market performance of U.S. firms that issue private equity is significantly lower than that of nonissuers over a 3-year period after the offering, and view this as evidence of overoptimistic reactions by investors during the announcement period. ”
- Does Investor Identity Matter in Equity Issues? Evidence from Private Placements (2005, neutral): “Hertzel et al. (2002) analyze the long-term stock price performance of firms that place equity privately.”
- Private placements and managerial entrenchment (2007, background): “The long-run stock returns, in contrast, are negative and statistically significant (Sheehan and Swisher, 1998; Hertzel et al., 2002; Krishnamurthy et al., 2005).”
- Does investor identity matter? An empirical examination of investments by venture capital funds and hedge funds in PIPEs ☆ (2007, methodology): “Hertzel et al. (2002) provide another rationale of investor over-optimism to explain the negative long-run stock performance of firms after private placements, where investors are over-confident in expecting firm performance will improve in the future despite its poor historical operating…”
- Hedge Funds as Investors of Last Resort (2009, background): “Hillion and Vermaelen (2004) show that companies issuing floating-rate convertibles, a type of structured PIPE, tend to perform particularly poorly in the long term.”
- Customer Satisfaction and Stock Returns Risk (2009, neutral): “Low-priced stocks tend to exhibit behavior that is contrary to the normal behavior of the majority of stocks (Ball, Kothari, and Shanken 1995; Hertzel et al. 2002).”
- Do Shareholders of Acquiring Firms Gain from Acquisitions? (2003, neutral): “Alternatively, Hertzel and Smith (1993) propose that investors who buy in a private equity issue can obtain information from the firm that diffuse and anonymous investors cannot, so that the potential for an equity issue to reveal adverse information is mitigated.”