SEO Firms’ Characteristics and Long-Run Stock Performance: Overinvestment and Financial Constraints

• Main Authors: Chia-Wei Li, 李佳葦
• Other Authors: 徐俊明
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/8cxz8q

碩士 === 國立中興大學 === 財務金融系所 === 101 === This paper investigates the reasons that cause firms’ long-term stock performance to deteriorate following seasoned equity offerings (SEOs). Using U.S. SEO firms completed between 1990 and 2008, I examine whether overinvestment, financial constraints, and institutional ownership affect firms’ long-term performance recession after SEOs. In particular, I consider the impacts of overinvestment, financial constraints and institutional ownership on issuers’ long-term performance. 　　The results show that firms with high over-investment, low financial constraints, and low institutional ownership present poor stock performance after SEOs. Furthermore, I find that there is a significant negative relation between overinvestment and firms’, and financial constraints and institutional ownership are positively associated with firms’ performance.