Stock authorizations: A sequential equilibrium analysis

Noe, Thomas and Jayaraman, Narayanan (1991) Stock authorizations: A sequential equilibrium analysis. Review of Quantitative Finance and Accounting, 1 (4). pp. 383-397.


We develop a sequential equilibrium model of the common stock authorization process. We provide conditions under which actions that increase the number of slack shares, such as stock authorizations, generate negative announcement effects.

Item Type: Article
Keywords: stock authorization, sequential equilibrium model, slack shares, negative announcement effects, finance
Subject(s): Finance
Date Deposited: 17 Nov 2011 17:06
Last Modified: 25 Sep 2018 08:12
Funders: N/A

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