Abstract
Between 2009 and 2014, 75% of seasoned equity offerings (SEOs) were announced and issued overnight, compared to 27% between 2000 and 2008. Overnight issuers obtain a higher SEO offer price because they experience more favorable pre-offer returns. Consistent with these favorable returns being due to the avoidance of pre-issue selling pressure, non-overnight issuers experience a 2.5% pre-issue stock-price decline that reverses within 7 days. This post-issue reversal is increasing in SEO offer size and bigger following large pre-issue price declines. In contrast, returns following overnight offerings are less positive and unrelated to SEO offer size or pre-issue returns.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 837-866 |
| Number of pages | 30 |
| Journal | Journal of Financial and Quantitative Analysis |
| Volume | 53 |
| Issue number | 2 |
| DOIs | |
| State | Published - Apr 1 2018 |
All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics and Econometrics