Does liquidity risk explain low firm performance following seasoned equity offerings?

被引：11
|
作者：
Bilinski, Pawel [1 ]
Liu, Weimin [2 ,3 ]
Strong, Norman [4 ]
机构：
[1] Univ Lancaster, Sch Management, Lancaster LA1 4YX, England
[2] Univ Nottingham, Sch Business, Nottingham NG8 1BB, England
[3] Shanxi Univ, Sch Management, Taiyuan, Peoples R China
[4] Manchester Business Sch, Manchester M15 6PB, Lancs, England
来源：
JOURNAL OF BANKING & FINANCE | 2012年 / 36卷 / 10期
关键词：
Event studies; Seasoned equity offerings; Liquidity risk; CROSS-SECTION; PRICE STABILIZATION; ANALYST COVERAGE; PUBLIC OFFERINGS; DELISTING BIAS; EARNINGS; RETURNS; SIZE; MOMENTUM; ILLIQUIDITY;
D O I：
10.1016/j.jbankfin.2012.07.009
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
A seasoned equity offering (SEO) can improve a firm's stock liquidity and lower its cost of capital. This paper examines whether SEO firms achieve a liquidity gain and the sources of this gain. It explores the role of liquidity risk in explaining SEO long-run performance. The evidence shows that SEO firms experience significant post-issue improvements in liquidity and reductions in liquidity risk. Size and book-to-market matching fails to control for these liquidity effects, generating the low long-term post-SEO performance documented in the literature. After adjusting for liquidity risk, SEO firms show normal long-term performance. (c) 2012 Elsevier B.V. All rights reserved.
引用
收藏
页码：2770 / 2785
页数：16
相关论文
共 50 条
  • [11] The operating performance of firms conducting seasoned equity offerings
    Loughran, T
    Ritter, JR
    [J]. JOURNAL OF FINANCE, 1997, 52 (05): : 1823 - 1850
  • [12] The Performance of Chinese Seasoned Equity Offerings after Equity Division Reform
    Wang Xiao-wei
    Ning Rui-hai
    [J]. 2012 INTERNATIONAL CONFERENCE ON MANAGEMENT SCIENCE & ENGINEERING, 2012, : 1491 - 1496
  • [13] Does managerial ability matter for the choice of seasoned equity offerings?
    Puwanenthiren, Premkanth
    Dang, Man
    Henry, Darren
    Puwanenthiren, Pratheepkanth
    Al Mamun, Md.
    [J]. NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE, 2019, 47 : 442 - 460
  • [14] The long-term performance of corporate bonds (and stocks) following seasoned equity offerings
    Eberhart, AC
    Siddique, A
    [J]. REVIEW OF FINANCIAL STUDIES, 2002, 15 (05): : 1385 - 1406
  • [15] Stock price performance of seasoned equity offerings: completed vs withdrawn Stock price performance of seasoned equity offerings: completed vs withdrawn
    Frijns, Bart
    Navissi, Farshid
    Tourani-Rad, Alireza
    Tsai, Lana
    [J]. MANAGERIAL FINANCE, 2006, 32 (03) : 234 - 246
  • [16] Seasoned Equity Offerings and Differences in Share-Price Impact by Firm Categories
    Abdullah, Saeed Md
    Zaby, Simon
    [J]. INTERNATIONAL JOURNAL OF FINANCIAL STUDIES, 2021, 9 (03):
  • [17] Liquidity Changes around Seasoned Equity Issuance: Public Offerings versus Private Placements
    Qian, Hong
    [J]. FINANCIAL REVIEW, 2011, 46 (01) : 127 - 149
  • [18] Corporate Social Responsibility and the Pricing of Seasoned Equity Offerings: Does Executive Firm-Related Wealth Matter?
    Hong Chuong Pham
    Duc Anh Ngo
    Ha Thanh Le
    Thiet Thanh Nguyen
    [J]. JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS, 2020, 7 (08): : 297 - 308
  • [19] Anomalous evidence on. operating. performance following seasoned equity offerings: The case of REITs
    Friday, HS
    Howton, SD
    Howton, SW
    [J]. FINANCIAL MANAGEMENT, 2000, 29 (02) : 76 - 87
  • [20] Is the market surprised by poor earnings realizations following seasoned equity offerings?
    Denis, DJ
    Sarin, A
    [J]. JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2001, 36 (02) : 169 - 193
12345