Abstract
In contrast to the negative average abnormal returns accompanying the announcement of a public offering of securities, the announcement of a private sale of equity is accompanied by a 4.5% average abnormal return. Cross-sectional analysis indicates that the change in firm value at the announcement of a private sale is strongly correlated with the resulting change in ownership concentration. This relation depends on the level ownership concentration after the sale and the purchaser's current or anticipated future relationship with the firm.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
