Journal article
The private placement of bank equity
Journal of banking & finance, v 17(6), pp 1111-1131
1993
Abstract
This paper investigates the role of private placements of common stock as a source of bank capital. Our results show that information asymmetry problems that typically attend new offers of bank equity are mitigated in the private placement process. Moreover buyers of privately placed common stock seem to provide a quality certification of capital deficient bank holding companies. Our evidence is also consistent with the notion that buyers of privately placed common stock provide a monitoring service that aligns the interest of the bank's managers and shareholders. Finally, we find no evidence that private placements are predominately motivated by incumbent management's attempts to sell equity to a friendly buyer at the expense of the bank's current shareholders.
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Details
- Title
- The private placement of bank equity
- Creators
- Raj Varma - University of PennsylvaniaSamuel H. Szewczyk - Drexel University
- Publication Details
- Journal of banking & finance, v 17(6), pp 1111-1131
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:A1993ML27100003
- Scopus ID
- 2-s2.0-38248999952
- Other Identifier
- 991019173948504721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics