We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
INVESTOR OVEROPTIMISM AND PRIVATE EQUITY PLACEMENTS.
- Authors
Marciukaityte, Dalia; Szewczyk, Samuel H.; Varma, Raj
- Abstract
We reexamine investor tendency to overweight recent experiences when predicting future performance of firms by examining a sample of firms making private equity placements. Our findings are consistent with the projection argument that investors use the recent experiences of other firms to predict the success of placing firms. Specifically, we find that the placements preceded by a larger number of recently very successful firms are associated with the significantly more favorable market reaction to the placement announcement and significantly poorer post-placement stock price performance.
- Subjects
INVESTORS; PRIVATELY placed securities; CORPORATE finance; STOCK prices; PRICES of securities
- Publication
Journal of Financial Research, 2005, Vol 28, Issue 4, p591
- ISSN
0270-2592
- Publication type
Article
- DOI
10.1111/j.1475-6803.2005.00141.x