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Seasoned equity offerings and corporate financial management

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journal contribution
posted on 30.03.2021, 12:47 by Michael J. BARCLAY, Fangjian FUFangjian FU, Clifford W. SMITH

We assume executives managing corporate financial policy consider the firm's current and target leverage, investment plans, anticipated cash flows, and consequences of alternative sequences of financing transactions, operating within efficient markets. Our analysis yields time-series and cross-sectional predictions for management of investment spending and leverage; use of maturity, priority, and convertibility covenants; and management of dividends, share repurchases, cash balances, and credit lines. Our evidence from 8608 SEOs covering 1970–2015 is consistent with implications of our theory, helps to resolve an array of issues in corporate finance, and offers a step toward a more unified analysis of rational corporate financial management.

History

Publication Date

27/07/2020

Journal

Journal of Corporate Finance

Pages

1-29

ISSN

0929-1199

School

Lee Kong Chian School of Business

IRIS ID

141217040