Abstract
dc:description"In the first essay, ""Do Firms Knowingly Sell Overvalued Equity?"", I develop a simple equilibrium model which shows that insider trading around seasoned equity offerings (SEO) depends on both the quality of issuing firms and insiders' exogenous consumption shocks, neither of which are known by outside investors in the model. The empirical evidence indicates that insider trading is not reliably related to the future long-term stock returns of issuing firms even though it is reliably related to their announcement period abnormal returns. Issuing firms underperform their benchmarks regardless of the prior insider trading pattern. This suggests that insiders who have purchased shares before issuing do not realize that the market has overcapitalized prior good news, and are not knowingly selling overvalued equity."
Degree
thesis:*- Name thesis:degree_name
- Ph.D.
- Level thesis:degree_level
- Dissertation
- Discipline thesis:degree_discipline
- Finance
- Grantor
- University of Illinois at Urbana-Champaign
- Year dc:date
- 2011
Author and committee
dc:creator, dc:contributor.*- Author dc:creator
-
- Lee, Inmoo
- Contributors dc:contributor
-
- Ritter, Jay R.
Subjects
dc:subject × 2Rights
dc:rights- Statement dc:rights
-
- Copyright 1995 Lee, Inmoo
- Language dc:language
- eng
Identifiers
dc:identifier.*- Identifier
-
AAI9543644
(UMI)AAI9543644 - OAI identifier oai:identifier
- oai:www.ideals.illinois.edu:2142/20073