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Our research shows that most equity issuances are indirect.
Taking equity issuances into account has a dramatic effect.
For any public firm, additional financing is easily available through direct and indirect equity issuances.
First, the sensitivity of equity issuances to past stock performance is the highest among firms close to the target leverage.
It fails to account for offsetting equity issuances and assumes incorrectly that none of the expenses subtracted from revenue to arrive at net income is investment-related.
To properly understand how much capital is flowing between companies and shareholders, one must look at net shareholder payouts dividends and repurchases minus equity issuances.
Similar(39)
Equity issuance slowed to a crawl.
2008 was dominated by equity issuance for banks, but the first two months of 2009 have already seen €20bn of announced new equity issuance for European corporates.
Even with £250m equity issuance, we estimate the uplift would be over 20%.
Equity issuance was supposed to provide some insurance across the industry.
Is that really funds flow or is it cash from equity issuance?
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CEO of Professional Science Editing for Scientists @ prosciediting.com