cover_international-review-of-entrepreneurship.jpg

Managerial Stability and the Pricing of New Equity Issuances: The Effects of State Enforcement of Noncompetition Agreements

In this paper, we empirically investigate the relationship between managerial stability induced by the legal enforcement of noncompetition agreements and the pricing of new equity issuances. Making use of the variation in the enforceability of noncompetition contracts across states in the U.S., we find that managerial stability is negatively related to underpricing and price revision for our sample of new equity issuing firms. Our results demonstrate that the stability of management is important for an issuing firm to convey its intrinsic value credibly to the market.

30. Juni 2017

Autoren Yin-chi Liao Bill Francis Iftekhar Hasan Haizhi Wang

Ansprechpartner

Für Wissenschaftler/innen

Für Journalistinnen/en

Stefanie Müller
Stefanie Müller
Leiterin Kommunikation

Für Rückfragen stehe ich Ihnen gerne zur Verfügung.

+49 345 7753-720 Anfrage per E-Mail
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo