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dc.contributor.authorArmitage, Seth-
dc.contributor.authorDionysiou, Dionysia-
dc.contributor.authorGonzalez, Angelica-
dc.description.abstractThis paper investigates the large and diverse discounts in UK open offers and placings. Large discounts are a substantial cost to shareholders who do not buy new shares. The existing literature mainly examines US firm-commitment offers and private placements, but UK open offers and placings differ from both types of US offer. The paper presents evidence that inelastic demand, illiquidity of the issuer's shares, and financial distress are key determinants of the discount. The effects of inelastic demand and distress are much more apparent in UK than in US SEOs. We argue that institutional features obscure the role of these variables in the US context.en_UK
dc.publisherSocial Science Electronic Publishing, Inc-
dc.relationArmitage S, Dionysiou D & Gonzalez A (2012) Are the Discounts in UK Open Offers and Placings Due to Inelastic Demand?. Social Science Electronic Publishing, Inc.-
dc.subjectseasoned equity offeren_UK
dc.subjectinelastic demanden_UK
dc.subjectopen offeren_UK
dc.titleAre the Discounts in UK Open Offers and Placings Due to Inelastic Demand?en_UK
dc.typeWorking or Discussion Paperen_UK
dc.type.statusAuthor Version-
dc.subject.jelG30, G32-
dc.contributor.affiliationUniversity of Edinburgh-
dc.contributor.affiliationAccounting and Finance-
dc.contributor.affiliationUniversity of Edinburgh-
Appears in Collections:Accounting and Finance Working Papers

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