Work

Does the Sequence of Seasoned Equity Offerings Matter?

Year: 2003

Type: article

Abstract: We investigate the relation between announcement period returns and the sequence of seasoned equity offerings (SEOs) for industrial, financial, and utility firms making multiple offerings. For industrial firms, there is a monotonically positive relation between the returns and the sequence of issues. Further, the stock price reactions to the fourth and subsequent issues by industrial firms are insignificant. For firms that conduct at least two SEOs, there is no difference in returns between industrial firms and utilities or financial institutions. The lower negative returns for later announcements by industrial firms can be explained by reduced adverse selection costs.

Source: Financial Management

DOI: 10.2307/3666136

Authors: Ranjan D'Mello, Oranee Tawatnuntachai, Devrim Yaman

Institutions: Wayne State University, Pennsylvania State University, Western Michigan University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2018232838

FWCI: 1.232

Cites: 10

Cited by: 46

Related to: 10