Explore the vast range of titles available.

This study investigates the changes in quantity and cost of bank loans after a private placement of common stocks by A-share listed companies in China from 2011 to 2021. This research is derived from the signaling theory and is based on a difference-in-difference design. Through propensity score matching, the sample comprises companies that placed equity privately in the experiment group and companies that did not place equity privately in the control group. We find evidence that the increase in bank loans slowed down, and the cost of bank loans increased after the private placement. The signaling effect of private placements is robust to various additional tests. Further analysis indicates that when state-owned enterprises place equity privately, their access to bank loans is not affected. When institutional investors participate in the private placement, the company’s access to bank credit does not go through significant changes. In addition, private placements by companies located in regions with higher levels of marketization of the financial market do not reduce the cost of bank loans.

Six commercial banking companies made use of private placements in 2024, four of them registered in December: » First Community Bancshares Inc. of Batesville, the parent of First Community Bank, had raised $23.3 million of a $30 million offering as of Dec. 23. » Oak Tree Financial Corp. Inc. of Rogers raised almost $10.7 million of a $20 million equity offering from 55 investors in December for its announced $10.1 million acquisition of Riverside Bank of Sparkman, which closed on Jan. 3. FNBC Bancorp Inc. of Ash Flat, parent company of FNBC Bank, placed $7.25 million in debt with a single lender on Nov. 27.

The holding company of Encore Bank filed another $75 million offering in September but, as of last week, had not reported selling any of the equity and is therefore missing from this weeks list. An offering of $52.8 million was filed in April by Pine State Infrastructure Fund IV LP, an individual investment fund created by the Pine State Regional Center, a subsidiary of Arkansas Capital Corp. Group of Little Rock. The most ambitious offering last year came from Ridgecrest Capital Group Fund C LLC, a commercial real estate fund associated with Ridgecrest Capital Group LLC of Little Rock, led by Billy Miller.

Purpose This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage to influence their stock prices during private equity placement. Design/methodology/approach We collect a corpus of news stories and transform the news into term sets based on the part of speech. Then, we refer to Cecchini et al. (2010) to classify the news terms into positive, negative, and usual categories. Next, we employ the SVM algorithm to perform the classification tasks and the term frequency method to perform the text mining task. In last, we use a multiple regression model to verify the hypotheses. Findings We determine that issuing firms in a private placement have substantially more positive news stories and fewer negative news stories than those in public offerings. Furthermore, we evidence that the media management effects of postequity issues are more active than those of preequity issues. Finally, our results demonstrate that the timing and content of financial media coverage among different equity issuance methods may be biased by firm management. According to previous studies, they may attempt to manipulate stock prices to increase the number of highly profitable insider stakeholders. Originality/value To our knowledge, this is the first study to investigate that if private placement will associate with more active media management than the public offerings. According to our results of the difference-in-means test, the public offerings market may control news coverage; however, this result is inconsistent with that of the regression results. The private placements market may also exercise media management in the “before announcement day” and “after announcement day” periods by increasing positive news and reducing negative news.

A private placement is the sale of securities as a way of raising capital. Most private placements are offered to a small number of select investors, at a fixed rate that can be set by the issuer. The solicitation of investors can be simultaneous or sequential, and the chosen style may influence the associated cost. Sequential solicitation is generally more expensive over time since it is carried out gradually, although simultaneous solicitation can be more expensive if it involves a greater number of investors. In this paper, a theoretical model is developed that allows the two styles of solicitation to be compared. It is demonstrated that sequential solicitation generally involves a lower cost than simultaneous solicitation, although it does require a greater number of investors. Conditions are determined under which these two styles of solicitation are equivalent in cost and in the number of investors required. Specifically, it is obtained that, if the group of investors is homogeneous, then both styles of solicitation will have the same monetary cost and will require the same number of investors.

Social media platforms, as well as the internet more broadly, have fundamentally altered many aspects of modern life. In particular, platforms' targeted advertising mechanisms have revolutionized how companies reach consumers by providing advertisers more effective tools for reaching consumers and by tailoring content to consumers' individual interests. Advertising, in many respects, has always been targeted--it has always sought to reach and influence a certain set of consumers. Today's targeted advertising, however, allows advertisers to influence consumer behavior on an increasingly granular and intimate level, further skewing the power imbalance between advertisers and consumers. This new dynamic, together with changes to advertising rules for private securities offerings, creates a regulatory gap: should issuers be allowed to promote private offerings through targeted advertising on social media?

This study looks into the role of corporate life cycle on market discounts and firm performance in private placements. Using the standard event study methodology with 1854 private placements, this study finds that issuing firms on average offer discounts to their investors. While growth firms obtain higher returns around the issuance of private placements, these growth firms generate poor long run post-announcement returns. The results suggest that investors may be over-optimistic to future prospects for growth firms. As old firms generally obtain higher returns in premium offers, the evidence suggests that managers of old firms would put more efforts in managing their firms after private placements. Overall, the evidence indicates that corporate life cycle can play a role to influence firm performance in private placements. The empirical findings shed lights on the importance of corporate life cycle on firm performance in private placements.

The holding companies are associated with the $1.2 billion-asset Chambers Bank, the $500 millionasset First State Bank, the $226 millionasset Merchants & Farmers Bank and the $300 million-asset Commercial National Bank in Texarkana, Texas. Mike Donnell, chief operating officer of Chambers Bancshares and president of Chambers Bank, said that of the $30 million raised about $19 million was pushed down to the bank as capital, about $8 million was used to pay off corporate debt and the balance was retained as cash. In another sale-leaseback deal, Tempus New Albany LB LLC raised $12.7 million toward the $42 million acquisition of the 236,070-SF headquarters of specialty women's retailer Lane Bryant in New Albany, Ohio. *

PurposeThe objective of this paper is to investigate the role of information asymmetry in the equity selling mechanisms chosen by the firms from an important emerging market, India. Specifically, the authors look into the choice between the two most popular mechanisms of equity issues – rights issue and private placement of equity.Design/methodology/approachThis study introduces three analyst specific variables as proxies of information asymmetry as the conventional proxies are fraught with several disadvantages. First, the paper tests the choice between rights issue and private placement using a binary logistic model. In the second approach the authors use rights issue and segregate the private placements into preferential allotments and qualified institutional placements and test the impact of information asymmetry using a multinomial logistic regression.FindingsThe outcome of this empirical exercise shows that only those firms facing lesser information problems choose rights issue of equity. Private placements are chosen by firms facing higher information problems to circumvent information costs. The results remain invariant even after segregating the qualified institutional placements from private equity placement as the firms with information disadvantage choose to place equity privately.Originality/valueIn contrast to the conventional studies that focus on the debt-equity framework, the authors argue that the impact of information asymmetry is applicable even at disaggregated levels of equity selling mechanism.

Debtors-in-possession have increasingly turned to rights offerings and/or private placement sales as an exit financing option in chapter 11 bankruptcy. When timed and executed properly, these offerings can provide a windfall of returns to select creditors. This windfall does not appear to exist outside of chapter 11, as rights offerings and private placements are subject to heightened fiduciary duties without the flexibility of the Bankruptcy Code. Notwithstanding objections to many aspects of these sales and their outcomes, courts adjudieating these disputes have found no violations of the Code. The popularity of these offerings within chapter 11 has increased in recent years and courts have consistently confirmed plans that include them. This Article asserts that courts adjudicating rights offerings disputes have correctly applied the plain language of the Code. However, unbridled financing terms combined with intentional complexity, opaque value incurred, and strategic negotiation methods have created the opportunity for favored groups of creditors to strike a windfall that the drafters of the Code never intended to allow, as this treatment undermines the equitable nature of bankruptcy. While some commentators and at least one judge have discussed rights offering components using reasonability terms, there is currently no express reasonability test applied to rights offerings. This Article argues that a market-based reasonability standard applied to rights offering finance terms would mitigate this windfall yet preserve fair returns for investors willing to take financial risks. This result would more properly balance the equitable goals of bankruptcy, while still ab lowing for successful debtor exit financing.