Does Managerial ability matter for the choice of Seasoned Equity offerings?

Puwanenthiren, P., Dang, M., Henry, D., Puwanenthiren, P. and Al Mamun, M. 2019. Does Managerial ability matter for the choice of Seasoned Equity offerings? North American Journal of Economics and Finance. 47, pp. 442-460. doi:10.1016/j.najef.2018.06.002

TitleDoes Managerial ability matter for the choice of Seasoned Equity offerings?
TypeJournal article
AuthorsPuwanenthiren, P., Dang, M., Henry, D., Puwanenthiren, P. and Al Mamun, M.
Abstract

We provide evidence that managerial ability is positively and significantly related to the issuance method decision of seasoned equity offerings (SEOs) in the U.S. market. Our result is robust after controlling for various internal and external governance mechanisms, addressing the problem of endogeneity, and adopting a number of alternative specifications. We further find that the impact of managerial ability on the SEO issuance choice is stronger for firms with higher information asymmetry, CEO duality and weaker governance settings. Overall, our study supports the notion that higher managerial ability is perceived as a positive quality certification on firm information environments.

JournalNorth American Journal of Economics and Finance
Journal citation47, pp. 442-460
ISSN1062-9408
Year2019
PublisherElsevier
Digital Object Identifier (DOI)doi:10.1016/j.najef.2018.06.002
Publication dates
Published online26 Jul 2018

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