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Firms’ Choice of Seasoned Equity Issuance Method—Taking Private or Non-private Route

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  • Anjali Tuli

Abstract

The choice of an issuance method for selling subsequent equity is indeed an important corporate financial decision. The recent popularity of private placements over traditional seasoned equity offering (SEO) methods motivates this review on the determinants of firms’ choice between ‘private’ and ‘non-private’ routes for follow-on equity financing. Empirical results are generally consistent with the theoretical propositions. The review suggests further empirical evidence and importance of dynamic models to extensively explain the choice of an equity floatation method by listed companies.

Suggested Citation

  • Anjali Tuli, 2016. "Firms’ Choice of Seasoned Equity Issuance Method—Taking Private or Non-private Route," Global Business Review, International Management Institute, vol. 17(2), pages 400-410, April.
    • Handle: RePEc:sae:globus:v:17:y:2016:i:2:p:400-410
    DOI: 10.1177/0972150915619816
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