Please use this identifier to cite or link to this item:
Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: Are the Discounts in Seasoned Equity Offers Due to Inelastic Demand?
Author(s): Armitage, Seth
Dionysiou, Dionysia
Gonzalez, Angelica
Contact Email:
Keywords: seasoned equity offer
inelastic demand
open offer
Issue Date: Jun-2014
Date Deposited: 20-Apr-2016
Citation: Armitage S, Dionysiou D & Gonzalez A (2014) Are the Discounts in Seasoned Equity Offers Due to Inelastic Demand?. Journal of Business Finance and Accounting, 41 (5-6), pp. 743-772.
Abstract: This 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. The institutional setting differs in the UK, in ways that make the theory of inelastic demand for shares more important as an explanation for discounts than in the US. The paper finds that inelastic demand, or illiquidity of the issuer's shares, and financial distress, are key determinants of the discount. We expect these results to apply to other stock markets.
DOI Link: 10.1111/jbfa.12074
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Licence URL(s):

Files in This Item:
File Description SizeFormat 
Armitage_et_al-2014-Journal_of_Business_Finance__Accounting.pdfFulltext - Published Version242.62 kBAdobe PDFUnder Embargo until 2999-12-16    Request a copy

Note: If any of the files in this item are currently embargoed, you can request a copy directly from the author by clicking the padlock icon above. However, this facility is dependent on the depositor still being contactable at their original email address.

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

The metadata of the records in the Repository are available under the CC0 public domain dedication: No Rights Reserved

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.