Equity Issuances, Equity Mutual Fund Flows, and Noise Trader Sentiment

被引:9
作者
Chiu, H. H. [1 ]
Kini, O. [2 ]
机构
[1] Calif State Univ Northridge, Northridge, CA 91330 USA
[2] Georgia State Univ, Atlanta, GA 30303 USA
关键词
INVESTOR SENTIMENT; CROSS-SECTION; IPO; MARKET; MONEY;
D O I
10.1093/rof/rft009
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We examine whether equity issuances initial public offerings (IPOs) and seasoned equity offerings (SEOs) are in part driven by investor sentiment by using equity mutual fund flows to proxy for the rational and/or irrational components of aggregate demand for equity. We find that more firms issue equity when flows are higher and repurchase equity when flows are lower. More firms file with the Securities Exchange Commission when predicted flows in the expected issuance month are greater. Price revisions are positively related to contemporaneous flows and unexpected flows. Initial returns are positively related to contemporaneous flows only for IPO issuances. These results are driven by retail, and not institutional, flows. Our evidence suggests that investor sentiment partially drives equity issuances.
引用
收藏
页码:749 / 802
页数:54
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