managinginternalequityandse(编辑修改稿)

managinginternalequityandse(编辑修改稿)内容摘要：

ivisional firm  Decentralized infor. Division make budget based on Its own info. Senior managers determine the capital allocation. Balance somewhere Infor. asymmetry Means to control this problem: Ex post audit: efficient in a multiperiod model Ex ante audit: costly Internal capital MKT: within a multidivisional firm  Divisional rentseeking: Scharfstein and Stein (20xx)  The crosssubsidization: stronger divisions subsidize weak ones: Scharfstein and Stein (20xx). Shin and Stulz(1998) : investment in a given segment of a diversified firm is sensitive to CF of the firm’s other segments and is less sensitive to its own CF than is a singlesegment firm. Internal capital MKT  If external financing MKT is developed, firms tend to be focus。 otherwise, tend to be diversified. SEO infant star dog cash cow Investment opportunities Profitability of existing business If internal CF is Insufficient, SEO may have a positive react If SEO, MKT may have a negative react SEO  What’s the influence of SEO? ownership structure capital structure interest shift between old and new shareholders SEO  Methods of SEO private placement。 Wruck(1989) issuers are smaller。 a relatively bigger discount。 a positive MKT reaction The ownership structure hypothesis: anticipate change of managerial performance The infor. hypothesis: assessment of investment opportunities Hertzel and Smith (1993) SEO  Methods of SEO stock and stock option grant, employee stock ownership plans (ESOP) and dividend reinvestment plans (DRIPs) Rights offering have a deeply negative。