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Multinationality and Common Stock Offering Dilution
Author(s) -
Tsetsekos George P.
Publication year - 1991
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/j.1467-646x.1991.tb00088.x
Subject(s) - multinational corporation , cash flow , business , stock (firearms) , valuation (finance) , monetary economics , dilution , free cash flow , economics , finance , mechanical engineering , engineering , physics , thermodynamics
This study examines the common stock offering dilution of multinational and domestic firms. Results provide evidence that the benefits of multinationality do not offset the negative information effect of perceived cash flow shortfalls at the announcement of security offerings. MNCs and purely domestic firms experience comparable negative valuation and offering dilution at the announcement of a common stock offering. These results are independent of size and performance differences between multinational and domestic firms at the announcement year.