Market Feedback and Equity Issuance: Evidence from Repeat Equity Issues
研究发现首次股权发行后第一年的高回报会显著提高未来五年内再次发行的概率，支持市场反馈假说，即高回报促使管理者增加投资。
Abstract Higher first-year post-issue returns are associated with a significantly higher probability of follow-on equity issuance over the next 5 years. This result holds when we control for pre-issue returns and other factors known to affect the probability of equity issuance. The result is most consistent with the market feedback hypothesis that a high post-issue return encourages managers to increase the firm’s investment because it implies that, in the market’s view, the marginal return to the project is high.