Does managerial ability matter for the choice of seasoned equity offerings?
نویسندگان
چکیده
منابع مشابه
Valuation Effects of Seasoned Global Equity Offerings
This paper examines the shareholder wealth effects associated with global equity offerings made by foreign firms after their initial cross listing in the United States. We document that the market reaction to seasoned global equity offerings is economically and statistically insignificant. However, it is 1.5 percent larger than the market reaction to offerings made on local exchanges only. In a...
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This paper provides an empirical link between the expected cost of equity and firms’ Seasoned Equity Offerings activities, using a novel measure of forward-looking cost of equity. There is a negative impact of expected cost equity on SEO likelihood and amount of proceeds, exists on both market and firm level. Empirical evidence suggests that the negative SEO announcement effect and post-SEO lon...
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Seasoned equity offerings (SEOs) are sales of stock after the initial public offering. They are a means to raise funds through the sale of stock rather than the issuance of additional debt. We propose a method to predict the characteristics of firms that undertake this form of financing. Our procedure is based on logistic regression where firm-specific variables are obtained from the perspectiv...
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We argue that high quality firms that expect larger quantity of cash flows in the near future are more likely to actively smooth earnings via discretionary accruals before seasonal equity offerings to reduce underpricing. If high quality firms are confident about future earnings, it is also plausible to assume that they also push their offer prices up more aggressively, and lessen the degree of...
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A robust finding in the literature is that seasoned equity offerings (SEOs) are followed by negative long-run abnormal returns, which can be seen as evidence of market timing. In this paper I document the cost of market timing, based on the idea that investors view companies with the most negative abnormal returns in the year following a SEO, as most likely to have timed the issue. I find that ...
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ژورنال
عنوان ژورنال: The North American Journal of Economics and Finance
سال: 2019
ISSN: 1062-9408
DOI: 10.1016/j.najef.2018.06.002