Market Reaction, Revised Proceeds, and the Classification of Seasoned Equity Offerings

2011 ◽  
Author(s):  
Konan Chan ◽  
Nandkumar Nayar ◽  
Ajai K. Singh ◽  
Wen Yu
Keyword(s):  
Market Reaction ◽  
Seasoned Equity Offerings ◽  
Equity Offerings

scholarly journals Insider Trading and the Classification of Seasoned Equity Offerings: Evidence from Taiwan

2017 ◽  
Vol 9 (5) ◽  
pp. 58 ◽  
Author(s):  
Han-Ching Huang ◽  
Hsiu-Hsin Chiu
Keyword(s):  
Insider Trading ◽  
Abnormal Returns ◽  
Seasoned Equity Offerings ◽  
Growth Potential ◽  
Equity Offerings ◽  
Announcement Effects ◽  
Cumulative Abnormal Returns ◽  
Long Run ◽  
The Impact

This paper investigates whether insider purchasing or selling before Season equity offerings (SEO) announcement have the impact on the cumulative abnormal returns (CAR) around SEO announcement in Taiwan. We find that there are negative announcement effects around the SEO announcement, which is not consistent with the argument that there are usually positive announcement effects around the SEO announcement in Taiwan. Moreover, long-run abnormal returns following SEOs are negative. Therefore, the motivation of SEO has changed from investment to overvaluation.. Although there is net buying prior to SEO announcement, the outside investors still regard SEO announcement as a signal of overvaluation instead of growth potential.

Capital structure adjustment and market reaction following seasoned equity offerings

2019 ◽  
Vol 25 (3) ◽  
pp. 388-411
Author(s):  
Faiza Asad ◽  
Saqib Gulzar ◽  
Kenbata Bangassa ◽  
Majid Jamal Khan
Keyword(s):  
Capital Structure ◽  
Market Reaction ◽  
Seasoned Equity Offerings ◽  
Equity Offerings ◽  
Structure Adjustment

Anchoring on Historical High Prices and Seasoned Equity Offerings

2019 ◽  
Vol 55 (8) ◽  
pp. 2588-2612
Author(s):  
Armen Hovakimian ◽  
Huajing Hu
Keyword(s):  
Stock Price ◽  
Market Reaction ◽  
Seasoned Equity Offerings ◽  
Reference Points ◽  
High Price ◽  
Equity Offerings ◽  
Seasoned Equity Offering ◽  
Financing Decisions ◽  
Price Reference ◽  
Equity Offering

We document that firms’ financing decisions are affected by historical high prices. The ratio of the monthly high price to the 12-month historical high price positively affects the probability of a seasoned equity offering (SEO). Furthermore, the postannouncement market reaction is muted and the offering discount is smaller if the preannouncement stock price is high relative to its historical high price. The results suggest that historical high price reference points may help managers rationally time SEOs to take advantage of market reception and minimize issuance costs.

Sign in / Sign up

Export Citation Format

Share Document