全球智库信息集成服务系统(G2TT): PIPE Dreams? The Performance of Companies Issuing Equity Privately

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w11011
来源ID	Working Paper 11011
	PIPE Dreams? The Performance of Companies Issuing Equity Privately
	David J. Brophy; Paige P. Ouimet; Clemens Sialm
发表日期	2004-12-27
出版年	2004
语种	英语
摘要	Private Investments in Public Equity (PIPEs) have become an important source of financing for young, publicly traded firms whose poor operating performance may limit alternative financing options. We propose that firms are motivated to sell these securities to minimize costs associated with asymmetric information. We find that both the security structure and the investor composition of a PIPE security matter in the subsequent performance of the issuing firm. Poor post-issuance performance is associated with securities where investors obtain significant repricing rights, which protect them from future stock price declines. Furthermore, companies that obtain financing from hedge funds tend to under-perform companies that obtain financing from other institutional investors. We argue that hedge funds act as investors of last resort, playing an important role in the market for young, high-risk firms with substantial asymmetric information. Hedge funds are willing to fund such high-risk companies because they can protect against possible price declines in the issuing companies by either negotiating PIPE securities with repricing rights or by entering into short positions of the underlying stocks of the issuing companies.
主题	Financial Economics ; Financial Markets ; Financial Institutions ; Corporate Finance
URL	https://www.nber.org/papers/w11011
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/568646
推荐引用方式 GB/T 7714	David J. Brophy,Paige P. Ouimet,Clemens Sialm. PIPE Dreams? The Performance of Companies Issuing Equity Privately. 2004.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w11011.pdf（435KB）	智库出版物		限制开放	CC BY-NC-SA	浏览