The intra-industry transfer of information inferred from announcements of corporate security offerings

Article Abstract:

This study investigates the extent to which information inferred by investors from initial announcements of corporate security offerings affects share prices in the capital markets. The empirical tests measure the response in the common stock prices of both firms announcing a security offering and non-announcing firms operating in the same industry. Small but significantly negative abnormal returns are shown by industry shares upon initial announcements of common stock, convertible debt, and straight debt public offerings. Such an industry response indicates that share prices incorporate an inside assessment of factors relevant to the valuation of an industry subset of firms. (Reprinted by permission of the publisher.)

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The impact of preferred-for-common exchange offers on firm value

Article Abstract:

Certain capital structure changes implemented by corporations have reportedly no effect on corporate taxes; such structural changes are analyzed, especially stock exchanges of preferred shares for common stock equivalents. The analysis reveals that preferred-for-common stock exchanges result in changes in firm value, indicating that such structure changes do affect taxes payable by the exchanging corporation. It is also demonstrated that capital structure changes can affect the firm value for the exchanging corporation without affecting its tax status.

Economic aspects, Securities, Preferred stocks, Stock transfer

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Stock price dynamics and firm size: an empirical investigation

Article Abstract:

We show that after controlling for the effects of bid-ask spreads and trading volume the conditional future volatility of equity returns is negatively related to the level of stock price. This "leverage effect" is stronger for small, as compared to large, firms. We also document that while the essential characteristics of the relations between stock price dynamics and firm size are stable, the strengths of the relationships appear to change over time. (Reprinted by permission of the publisher.)

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