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Firm Size and the Information Content of Over-the-Counter Common Stock Offerings

  • Robert M. Hull

    (Washburn University)

  • George E. Pinches

    (University of Kansas)

Registered author(s):

    We examine the announcement period of stock returns for 179 over-the-counter (OTC) firms that issue common stock to reduce nonconvertible debt. We find that small OTC firms experience returns that are significantly more negative than large OTC firms. Regression tests reveal that firm size is a significant factor in accounting for stock returns. Other tests establish as firm size a dominant effect. Our support for a firm size effect is consistent with a differential information effect given that firm size is positively related to the amount of information available about firms.

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    File URL: http://jefsite.org/RePEc/pep/journl/jef-1995-04-1-b-hull.pdf
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    Article provided by Pepperdine University, Graziadio School of Business and Management in its journal Journal of Small Business Finance.

    Volume (Year): 4 (1995)
    Issue (Month): 1 (Spring)
    Pages: 31-55

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    Handle: RePEc:pep:journl:v:4:y:1995:i:1:p:31-55
    Contact details of provider: Postal: 24255 Pacific Coast Hwy, Malibu CA
    Web page: http://bschool.pepperdine.edu/jef

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