New Economy Companies in Australia Defy Traditional Models for Equity Offerings
The study looked at Australian new economy companies to understand why and when they offer more shares to the public. They found that existing models don't fully explain this behavior. Factors like signaling, market feedback, and short-term money needs only partly influence the likelihood of these companies making more shares available. The time between a company's first public offering and its next share offering is also not fully explained by signaling or short-term money needs, but is somewhat influenced by market feedback.