The Post-Performance of Seasoned Equity Offerings and Institutional Trading Behavior

• Main Authors: Jung-cheng Chang, 張俊成
• Other Authors: Andy Chien
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/81879866545514831816

碩士 === 國立高雄第一科技大學 === 金融所 === 98 === This study examines whether there is abnormal return after SEOs and the relationship between pre-offering and post-offering trading by institutional investors. The results show that the SEOs have underperformed non-SEO firms during the three years after issuing, not including the first-day return. We suggest that corporate managers are able to issue SEOs when the companies’ stock is overpriced. But there is no evidence shows wealth relative of the SEOs are lower. For the first five days, there is reverse relation between pre-offer net buy and post-offer net buy of institutional investors. But for the twenty one days, there is positive relation between pre-offer net buy and post-offer net buy of institutional investors. The institutional investors can determine the information of SEOs. There is consistency between pre-offering and post- offering trading by institutional investors.