公司理财教学资料cap015.pptVIP

15.* Real-World Tip: “Corporate America is turning more fickle in choosing finance partners on Wall Street …[m]ore companies are ditching the Wall Street underwriters they had selected for initial public offerings and picking different investment banks when it comes time to complete follow-on stock sales.” So read the opening lines of an article in the December 19, 1996 issue of The Wall Street Journal. But why is this occurring? According to the article, the phenomenon is attributable in part to the fact that many offerings quickly rise above the offering price, leading issuers to feel that their shares were underpriced (and that they left millions of dollars “on the table” as a result). 15.* Lecture Tip: More recent evidence (see “Underpricing, Overhang, and the Cost of Going Public to Preexisting Shareholders” by Dolvin and Jordan in the 2007 issue of Journal of Business Finance and Accounting) suggests that underpricing has little impact on owners, as very few preexisting shares are sold in IPOs. 15.* Signaling and managerial information – managers may choose to sell new shares of stock when they believe the current stock price is high (they can issue fewer shares at a higher price) Signaling and debt usage – issuing equity may send a signal that management believes the company currently has too much debt Issuing securities, especially stock, is very expensive, and the decrease in price may be partial compensation for the cost of the issue. 15.* Lecture Tip: You may wish to link the stock behavior associated with the ex rights date to that of the ex dividend date. Point out that a time line could be drawn that applies to stocks trading ex rights as well as stocks trading ex dividend. Both dividend and rights declarations involve setting an ex date, which is two days before the record date. In both situations, the share price reacts on the ex date to reflect the value of the right or dividend that would not be received if the shares were purchased after the e