Abstract
We examine the disclosure of size revisions of seasoned stock offerings to see what information revisions impart to investors. Revisions could deliver firm-originated information, which discloses something managers know about the firm. Alternatively, they could disseminate market-originated information, which is information market participants have but which is not conveyed until trading takes place. Our results reject the notion that revisions reveal firm-originated news. Instead, the results are consistent with the market-originated news hypothesis and suggest a mechanism that investors and underwriters use to learn about the demand for an offering.
Original language | English (US) |
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Pages (from-to) | 5-16 |
Number of pages | 12 |
Journal | Financial Management |
Volume | 27 |
Issue number | 1 |
DOIs | |
State | Published - 1998 |
All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics and Econometrics