Journal article
RAISING CAPITAL WITH PRIVATE PLACEMENTS OF DEBT
The Journal of financial research, v 14(1), pp 1-13
1991
Abstract
In this study the role of private placements of debt in the capital acquisition decision of public utilities is investigated. Whereas public offerings are sales of securities through financial intermediaries to the public‐at‐large, private placements are direct sales of securities by an issuing corporation to a limited number of institutional investors. In contrast to the negative stock price reactions typically found for public security sales, private placements are associated with significant positive abnormal returns in the shares of the issuing public utilities. Also, larger private placements appear to elicit a more favorable market response. Results are consistent with reduced information asymmetries and increased monitoring of the issuing firm resulting from the private placement.
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Details
- Title
- RAISING CAPITAL WITH PRIVATE PLACEMENTS OF DEBT
- Creators
- Samuel H. Szewczyk - Drexel UniversityRaj Varma - University of Delaware
- Publication Details
- The Journal of financial research, v 14(1), pp 1-13
- Publisher
- Wiley
- Number of pages
- 13
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:A1991FB83100001
- Scopus ID
- 2-s2.0-84986486669
- Other Identifier
- 991019173855604721
InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance