The new issues puzzle evidence from non-US firms
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Item type | Current library | Call number | Vol info | Status | Notes | Date due | Barcode | |
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Main Library - Special Collections | HB1.A666 APP (Browse shelf(Opens below)) | Vol.20 , No.16 - 18 (Dec 2013) | Not for loan | For In House Use Only |
For non-US stocks of firms in the G7 countries, we empirically test the new issues puzzle – stocks of firms that issue new equity are, on average, very poor investments relative to various benchmarks – by market capitalization. Only for the United Kingdom do we find evidence for a significantly negative relation between net share issues and expected returns for larger capitalization stocks. There is some evidence for Japanese stocks. For the other four countries, a positive relation between net share issues and expected returns is observed.
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