| Summary: | 碩士 === 國立中央大學 === 財務金融研究所 === 95 === This paper uses a sample of 3010 seasoned equity offering (SEO) events from 1996 to 2005 to examine the signal effect of SEO announcement on rivals of the issuer, and on price reaction in customer and supplier industries. The cumulative abnormal return (CAR) to the overall sample of rival is negative on window (-1, 1) while it is offset on window (-5, 5). The sub-sample of rivals provides an evidence to support information asymmetry, growth investment opportunity, and capital structure hypotheses that competitive effect is strong under these theories and negative CAR comes from unfavorable signal and the lower financial leverage of issuer. The negative CAR to the customers mainly derives from small firm size of the issuer and the low-concentrated industry. The abnormal return to the suppliers is unrestricted because the benefits on increase on material demand and decrease on issuer’s default rate are offset by bargaining power of issuer.
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