Do Firms Knowingly Sell Overvalued Equity?
研究高管交易与增发股票长期回报的关系，发现主要发行新股的公司长期表现不佳，而主要出售现有股东股份的公司表现正常，表明自由现金流问题导致表现不佳。
This article examines the relation between top executives' trading and the long-run stock returns of seasoned equity issuing firms. Primary issuers, who sell mostly newly-issued primary shares, significantly underperform their benchmarks, regardless of the top executives' prior trading pattern. However, top executives' trading is reliably associated with the stock returns of secondary issuers, who sell mostly secondary shares previously held by existing shareholders. On average, secondary issuers do not underperform their benchmarks. The results suggest that increased free cash flow problems after issue play an important role in explaining the underperformance of issuing firms.