HCBE Faculty Books and Book Chapters

Forecasting the use of seasoned equity offerings

Forecasting the use of seasoned equity offerings

Book Title

Advances in business and management forecasting

ORCID ID

Rebecca Abraham 0000-0002-3144-7759

Document Type

Book Chapter

ISBN

9780857242013

Publication Date

11-17-2010

Editors

Lawrence, D.L., Klimberg, R.K.

Description

Seasoned equity offerings (SEOs) are sales of stock after the initial public offering. They are a means to raise funds through the sale of stock rather than the issuance of additional debt. We propose a method to predict the characteristics of firms that undertake this form of financing. Our procedure is based on logistic regression where firm-specific variables are obtained from the perspective of the firm's need to raise cash such as high debt ratios, high current liabilities, reduction and changes in current debt, significant increase in capital expenditure, and cash flows in terms of cash as a percentage of assets.

DOI

https://doi.org/10.1108/S1477-4070(2010)7

Publisher

Emerald Publishing Limited

City

Bingley, UK

First Page

23

Last Page

36

Disciplines

Business

Files

Forecasting the use of seasoned equity offerings
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