26. May 2025

Do Firms Issue More Equity When Markets Become More Liquid? The Case of Imperial Germany, 1898–1913 Do Firms Issue More Equity When Markets Become More Liquid? The Case of Imperial Germany, 1898–1913

Publication of the article "Do Firms Issue More Equity When Markets Become More Liquid? The Case of Imperial Germany, 1898–1913"

The authors Prof. Dr. Carsten Burhop and Dr. Sergey Gelman are pleased to announce the publication of their Article "Do Firms Issue More Equity When Markets Become More Liquid? The Case of Imperial Germany, 1898–1913".

Publication
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Abstract:

Based on new aggregated data on initial and seasoned equity offerings (IPOs and SEOs) on the Berlin Stock Exchange before the First World War on a monthly basis and in combination with several other available datasets, we test the hypothesis presented by Hanselaar, René Stulz, and Mathijs (2019. Do Firms Issue More Equity when Markets Become More Liquid?” Journal of Financial Economics 133 (1): 64–82) that market liquidity significantly influences issuance activity on the stock market. For the first time, we can substantiate this hypothesis using historical data. Indeed, the number and value of SEOs and IPOs can be explained quite well with the help of past market liquidity.

Keywords: financial history; Germany pre-1913; stock issues; market liquidity

DOI: doi.org/10.1515/jbnst-2024-0058

  • Prof. Dr. Carsten Burhop
  • Dr. Sergey Gelman

Link to Publication | De Gryuter