A SURVEY OF THE ISSUE AND ISSUER CHARACTERISTICS AND THEIR IMPACT ON STOCK PRICE PERFORMANCE IN SEASONED EQUITY OFFERINGS

摘要

This paper examines the stock price reactions to the announcement of seasoned equity offerings. Extant research in finance shows that stocks generally react negatively to the announcement of equity offerings. The highest positive reaction (as a percentage of the number of issues) observed was 27 percent. To better study the price performance of the stocks, this paper controlled for the issuers' industry and exchange listings, leverage and growth potential of the issuer, and the size of the issue. It is found that size of the issue has the largest negative effect.