| dc.description.abstract | This thesis examines private placements on the Oslo Stock Ex-
change. We study the issuing rm's announcement statements,
post-issue rm performance, and the market reaction to disclose
the role of asymmetric information in private placements. We nd
that the market reacts more favorably to rms that reveal speci c
information about their intended use of proceeds. However, we
do not nd evidence indicating that speci c rms are more likely
to engage in value-maximizing projects than rms that are vague.
Previous literature has explained an adverse market reaction to
SEOs using the agency theory, market timing, and the pecking or-
der theory. We do not nd convincing support for either theory.
Thus, our ndings indicate a market ine ciency left unanswered
for future research. | en_US |
