TY - JOUR
T1 - Does the Sequence of Seasoned Equity Offerings Matter?
AU - D'Mello, Ranjan
AU - Tawatnuntachai, Oranee
AU - Yaman, Devrim
N1 - Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2003
Y1 - 2003
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0942300491&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0942300491&partnerID=8YFLogxK
U2 - 10.2307/3666136
DO - 10.2307/3666136
M3 - Article
AN - SCOPUS:0942300491
VL - 32
SP - 59
EP - 86
JO - Financial Management
JF - Financial Management
SN - 0046-3892
IS - 4
ER -