Earnings And Risk Changes Surrounding Primary Stock Offers
Earnings And Risk Changes Surrounding Primary Stock Offers
Paul M Healy
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0 3 To be included in the sample, a firnn has to: (1)make a public offering of new shares that is underwritten and registered with the SEC; (2) be listed on the ASE or NYSE at the time of the offering; (3) have only one class of voting stock; (4) have no other primary offerings in the previous five years; (5) have the primary offering announcement date available in the Wall Street Journal: (6) have stock price and return data available for the announcement date and two days prior to the event; ...(7) have a Wall Street Journal earnings announcement date for the year preceding the event: and (8) have annual earnings per share before extraordinary items and disconlinued operations available on Compustat for at least two of the six years before, and the five years after the event date. Summary statistics on changes m earnings per share as a percentage of initial equity price for years surrounding primary equity offer announcements^-'' Period relative to equity offer Number of firms Meanc First quartile f^edianc Third quartile Panel A: Raw earnings changes Year - 5 91 0.
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