Prof. Ioannis Floros (Iowa State University)

Program

Date: Thursday July 13, 2017

Zeit: 5 - 7 pm

Ort: Ludwigstr. 28, VG, 3rd floor, room 305

Title:

“At-The-Market (ATM) Offerings” co-authored with Matthew T. Billett and Jon A. Garfinkel

Abstract:

Facilitated in 2008, “At-The-Market” (ATM) equity offerings are direct share issuances to secondary market investors. Their popularity has increased dramatically, and in 2016 the number of ATMs and total proceeds of ATMs amounted to 63% and 28% of that for SEOs. ATMs forgo underwriters and shares are “dribbled-out” over many months rather than raised all at once. We find that firms choose between SEOs and ATMs in a manner that supports the costly certification hypothesis of Chemmanur and Fulghieri (1994). We also find that 65% of ATM proceeds are used to stockpile cash, compared to 84% of SEO proceeds