File(s) not publicly available
Evidence and Implications of Increases in Trading Volume Around Seasoned Equity Offerings
journal contribution
posted on 2023-06-08, 11:46 authored by Surendranath R Jory, Thanh N NgoThis paper examines whether managers time their seasoned equity offering (SEO) when the level of trading volume of the firm’s stock significantly increases relative to normal months. We hypothesize that once management of the issuing firm observes a significant positive increase in their stock’s trading volume, they interpret this increase in liquidity as an opportune time for the firm to float new shares. Using four different measures of abnormal trading volume, we find evidence that supports our hypothesis. Our results are robust even after controlling for various factors that have been previously found to be significant determinants of the SEO decision.
History
Publication status
- Published
Journal
Journal of Financial and Economic PracticeISSN
1937-6820Publisher URL
Issue
2Volume
10Page range
45-59Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-06-13Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC