The operating performance of firms conducting seasoned equity offerings

• 成果类型: Article
• 署名作者: Loughran, T; Ritter, JR
• 署名单位: State University System of Florida; University of Florida
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.1997.tb02743.x
• 发表日期: 1997
• 页码: 1823-1850
• 关键词: STOCK RETURNS; earnings; issues; INFORMATION; expectations; INVESTMENT; DECISION; puzzle; RISK

摘要

Recent studies have documented that firms conducting seasoned equity offerings have inordinately low stock returns during the five years after the offering, following a sharp run-up in the year prior to the offering. This article documents that the operating performance of issuing firms shows substantial improvement prior to the offering, but then deteriorates. The multiples at the time of the offering, however, do not reflect an expectation of deteriorating performance. Issuing firms are disproportionately high-growth firms, but issuers have much lower subsequent stock returns than nonissuers with the same growth rate.