- Title
- Junior Mining Sector capital-raisings: The effects of information asymmetry and uncertainity issues
- Creator
- Iddon, Casey; Hettihewa, Samanthala; Wright, Christopher
- Date
- 2013
- Type
- Text; Journal article
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/71157
- Identifier
- vital:6715
- Identifier
- http://www.na-businesspress.com/JABE/HettihewaS_Web15_3_.pdf
- Identifier
- ISSN:1499-691X
- Abstract
- While prospecting by junior mining companies (JMCs) is a vital contributor to modern wealth creation, attributes of the junior mining sector (JMS) limit JMC-fund raisings to external equity (shares). In considering responses by JMC principals to deep discounting and other JMC-investor strategies, potential responses were found to: increase returns to principals, increase JMS moral-hazard issues, and further deepen price discounts on JMC share offerings, especially IPOs. It is suggested that the attractiveness and moral-hazard consequences of these potential responses can be greatly diminished if mining-tenement fees are raised and JMC prospecting costs are allowed as an offset against those fees
- Relation
- Journal of Applied Business and Economics Vol. 15, no. 3 (2013), p. 56-67
- Rights
- Copyright National Business and Economics Society
- Rights
- This metadata is freely available under a CCO license
- Subject
- 1402 Applied Economics; 1502 Banking, Finance and Investment
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