Does having a credit rating leave less money on the table when raising capital? A study of credit ratings and seasoned equity offerings in China

被引：10

作者：

Poon, Winnie P. H. ^{[1
]}

Chan, Kam C. ^{[2
]}

Firth, Michael A. ^{[1
]}

机构：

[1] Lingnan Univ, Dept Finance & Insurance, Hong Kong, Hong Kong, Peoples R China

[2] Western Kentucky Univ, Gordon Ford Coll Business, Dept Finance, Bowling Green, KY 42101 USA

来源：

PACIFIC-BASIN FINANCE JOURNAL | 2013年 / 22卷

关键词：

Seasoned equity offerings; Credit rating; Information asymmetry;

D O I：

10.1016/j.pacfin.2012.10.003

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the impact of unsolicited credit ratings on seasoned equity offering (SEO) underpricing in China using issuer credit rating data of listed companies on the Shanghai and Shenzhen Stock Exchanges for the period 2002 to 2009. Our findings suggest that, after controlling for other factors, a SEO firm in China with a credit rating is able to reduce its SEO underpricing, on average, by 11.89% to 14.33%. In addition, we find that the underpricing of an SEO firm that receives a speculative-grade credit rating is not significantly different from an SEO firm with an investment-grade rating. Thus, SEO firms appear to benefit from receiving an unsolicited rating. In general, credit ratings reduce information asymmetry and hence leave less money on the table when raising capital. This may lead firms to actively solicit credit ratings in the future, especially those who plan to access the capital markets. (C) 2012 Elsevier B.V. All rights reserved.

引用

页码：88 / 106

页数：19