Influence of Secondary Offerings on the Liquidity and Trading Activity of Stocks Outstanding

  1. Acedo, M.A. 2
  2. Ruiz, Fco.J. 2
  3. Santamaría, R. 1
  1. 1 Universidad Pública de Navarra
    info

    Universidad Pública de Navarra

    Pamplona, España

    ROR https://ror.org/02z0cah89

  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Revista:
Finance a Uver

ISSN: 0015-1920

Año de publicación: 2008

Volumen: 58

Número: 1-2

Páginas: 21-37

Tipo: Artículo

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SCOPUS: 2-s2.0-41449100267 WoS: WOS:000254307400002 GOOGLE SCHOLAR

Otras publicaciones en: Finance a Uver

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Oferta de acciones y comportamiento de los invesores

2006/00093/001

Resumen

This paper examines the influence of secondary offerings (SOs) on the liquidity and trading activity of stocks outstanding. The results reveal that liquidity and trading activity increase after the execution of SOs. We observe that the offering discount is explained by the size of the offering and its retail composition. We have also shown that changes in liquidity and trading activity are explained by the retail composition of the offering, such that the choice of ownership structure is decisive in the level of liquidity afforded by SOs. The offering discount is one of the chosen methods of attracting small-scale investors and promoting share liquidity following these operations.