Three essays on corporate finance
Essay One: Does Corporate Social Responsibility Matter? Evidence from New Equity Issues This paper examines the relevance of corporate social responsibility (CSR) from the perspective of new equity issues. Overall, our findings support the theory that CSR affects equity demand; which, in turn, affec...
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| Format: | Thesis |
| Language: | English |
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2012
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| Online Access: | https://hdl.handle.net/10356/50662 |
| _version_ | 1826114193047158784 |
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| author | Liu, Zhenbin |
| author2 | Chong Beng Soon |
| author_facet | Chong Beng Soon Liu, Zhenbin |
| author_sort | Liu, Zhenbin |
| collection | NTU |
| description | Essay One: Does Corporate Social Responsibility Matter? Evidence from New Equity Issues This paper examines the relevance of corporate social responsibility (CSR) from the perspective of new equity issues. Overall, our findings support the theory that CSR affects equity demand; which, in turn, affects equity valuation. First, in support of the hypothesis that equity demand is negatively (positively) affected by CSR concerns (strengths) of the issuer, we find that (1) issuers with greater CSR concerns are more likely to revise downwards the terms (offer price, number of shares offered, and total proceeds raised) of their stock offerings; (2) the probability of the over-allotment option being exercised is negatively related to CSR concerns in SEO issues, but is positively related to CSR strengths in IPO issues; (3) firms with greater CSR strengths (concerns) are more likely to choose fully-marketed offers (accelerated offers); and (4) the change in the percentage of institutional holdings around the issue date is positively (negatively) related to CSR strengths (concerns). Second, on the effects of CSR on equity valuations, we find that (1) IPOs with greater CSR concerns are more likely to be overvalued, while SEOs with greater CSR strengths have higher underpricing; (2) CSR concerns are negatively related to abnormal returns around SEO announcement dates; and (3) SEO firms with high CSR concerns underperform SEO firms with low CSR concerns over both three-year and five-year post-issue periods. |
| first_indexed | 2024-10-01T03:35:10Z |
| format | Thesis |
| id | ntu-10356/50662 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:35:10Z |
| publishDate | 2012 |
| record_format | dspace |
| spelling | ntu-10356/506622024-01-12T10:12:15Z Three essays on corporate finance Liu, Zhenbin Chong Beng Soon Nanyang Business School DRNTU::Business::Finance::Corporate finance Essay One: Does Corporate Social Responsibility Matter? Evidence from New Equity Issues This paper examines the relevance of corporate social responsibility (CSR) from the perspective of new equity issues. Overall, our findings support the theory that CSR affects equity demand; which, in turn, affects equity valuation. First, in support of the hypothesis that equity demand is negatively (positively) affected by CSR concerns (strengths) of the issuer, we find that (1) issuers with greater CSR concerns are more likely to revise downwards the terms (offer price, number of shares offered, and total proceeds raised) of their stock offerings; (2) the probability of the over-allotment option being exercised is negatively related to CSR concerns in SEO issues, but is positively related to CSR strengths in IPO issues; (3) firms with greater CSR strengths (concerns) are more likely to choose fully-marketed offers (accelerated offers); and (4) the change in the percentage of institutional holdings around the issue date is positively (negatively) related to CSR strengths (concerns). Second, on the effects of CSR on equity valuations, we find that (1) IPOs with greater CSR concerns are more likely to be overvalued, while SEOs with greater CSR strengths have higher underpricing; (2) CSR concerns are negatively related to abnormal returns around SEO announcement dates; and (3) SEO firms with high CSR concerns underperform SEO firms with low CSR concerns over both three-year and five-year post-issue periods. DOCTOR OF PHILOSOPHY (NBS) 2012-08-27T07:10:54Z 2012-08-27T07:10:54Z 2012 2012 Thesis Liu, Z. (2012). Three essays on corporate finance. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/50662 10.32657/10356/50662 en 169 p. application/pdf |
| spellingShingle | DRNTU::Business::Finance::Corporate finance Liu, Zhenbin Three essays on corporate finance |
| title | Three essays on corporate finance |
| title_full | Three essays on corporate finance |
| title_fullStr | Three essays on corporate finance |
| title_full_unstemmed | Three essays on corporate finance |
| title_short | Three essays on corporate finance |
| title_sort | three essays on corporate finance |
| topic | DRNTU::Business::Finance::Corporate finance |
| url | https://hdl.handle.net/10356/50662 |
| work_keys_str_mv | AT liuzhenbin threeessaysoncorporatefinance |