Publication Type

Working Paper

Publication Date

11-2012

Abstract

We use a large sample from 2001 to 2009 that incorporates intraday transactions data from 39 exchanges and an average of 12,800 different common stocks to assess the effect of algorithmic trading (AT) on firms’ capital raising activities. Greater AT reduces net equity issues over the next year, but this is only partly driven by AT’s effect on proceeds from new securities issues. Our findings suggest that the main driver of this relationship is AT’s effect on share repurchases.

Keywords

Algorighmic trading, high frequency trading, capital raising, security issues

Discipline

Finance and Financial Management | Real Estate | Technology and Innovation

Research Areas

Finance

Identifier

10.2139/ssrn.2050856

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.2139/ssrn.2050856

Comments

Aug. 2013 FIRN Research Paper

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