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Influence of Secondary Offerings on the Liquidity and Trading Activity of Stocks Outstanding Author info | Abstract | Publisher info | Download info | Related research | Statistics Miguel A. Acedo (University of La Rioja )
Fco. Javier Ruiz (University of La Rioja )
Rafael Santamaría () (Public University of Navarra )
This paper examines the influence of secondary offerings (SOs) on the liquidity and trading activity of stocks outstanding. The results reveal that liquidity and trading activity increase after the execution of SOs. We observe that the offering discount is explained by the size of the offering and its retail composition. We have also shown that changes in liquidity and trading activity are explained by the retail composition of the offering, such that the choice of ownership structure is decisive in the level of liquidity afforded by SOs. The offering discount is one of the chosen methods of attracting small-scale investors and promoting share liquidity following these operations.
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Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance .
Volume (Year): 58 (2008)
Issue (Month): 01-02 (January)
Pages: 21-37
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Handle: RePEc:fau:fauart:v:58:y:2008:i:1-2:p:21-37Contact details of provider: Postal: Opletalova 26, CZ-110 00 Prague Phone: +420 2 222112330 Fax: +420 2 22112304 Email: Web page: http://ies.fsv.cuni.cz/ More information through EDIRC
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Keywords: secondary offerings (SOs) ; liquidity ; trading activity ; microstructure ; capital structure ; Find related papers by JEL classification: G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
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