RT Journal Article
SR Electronic
T1 Private Equity Offerings
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 57
OP 62
DO 10.3905/jpe.2002.320015
VO 5
IS 3
A1 LeRoy D. Brooks
A1 Eurico J. Ferreira
A1 Joseph T. Harder
YR 2002
UL https://pm-research.com/content/5/3/57.abstract
AB Rule 144A of the Securities and Exchange Commission allows financial institutions with more than $100 million invested in securities to trade unregistered privately placed securities freely among themselves. The authors study the behavior of 91 selected issues released during 1988-1993. They compare the performance of the issues with six financial data points: operating income divided by assets; working capital divided by assets; market value of equity divided by assets; sales divided by assets; common equity divided by market value of equity; and earnings coefficient of variation. Predictions of failure and success are made based on these variables.