Why do Companies Include Warrants in Seasoned<br />Equity Offerings: The case of French Unit Offerings - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Communication Dans Un Congrès Année : 2005

Why do Companies Include Warrants in Seasoned
Equity Offerings: The case of French Unit Offerings

Edith Ginglinger
  • Fonction : Auteur
  • PersonId : 838828
Jean-François Gajewski
Meziane Lasfer
  • Fonction : Auteur

Résumé

We analyze the reasons why companies issue units when they raise additional capital. We find that, in
contrast to previous evidence, units are not offered to mitigate the agency conflicts or to signal security
mispricing as they are predominantly issued during cold periods, in public rather than in rights offerings, and
when the issue is underwritten. In addition, the results indicate that companies choose to offer units to increase
their offer price flexibility and to underprice their seasoned equity offering so as to minimize the issue cost and the risk of failure of the issue. These results provide support for the net proceeds maximization hypothesis.
Fichier non déposé

Dates et versions

halshs-00149205 , version 1 (24-05-2007)

Identifiants

  • HAL Id : halshs-00149205 , version 1

Citer

Edith Ginglinger, Jean-François Gajewski, Meziane Lasfer. Why do Companies Include Warrants in Seasoned
Equity Offerings: The case of French Unit Offerings. European Financial Management Association, 2005, Milan, Italy. ⟨halshs-00149205⟩
102 Consultations
0 Téléchargements

Partager

Gmail Facebook X LinkedIn More