What does the market learn from stock offering revisions?

Tina M. Galloway, Claudio F. Loderer, Dennis P. Sheehan

Research output: Contribution to journalArticlepeer-review

9 Scopus citations


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 languageEnglish (US)
Pages (from-to)5-16
Number of pages12
JournalFinancial Management
Issue number1
StatePublished - 1998

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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