Market Timing, Market Conditions and Seasoned Equity Offerings

• Main Authors: Yu-lin Liao, 廖育羚
• Other Authors: Yih-bey Lin
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/82622659862549959688

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 96 === This study examines the issuing motives of seasoned equity offerings (SEOs) by verifying market timing and market conditions hypotheses. The results evidence that firms with higher market values relative to book values tend to undertake SEOs (i.e., utilization of overpricing), but they have less consideration for the changes in market conditions (e.g., expected market return, expected aggregate profitability, or prior uncertainty). It shows that firms attach more important to past and immediate market returns but expect market situations. Therefore, our findings tend to support market timing hypothesis but to have reservations for market conditions hypothesis.