The effect of seasoned equity offerings on stock price of firms listed at the Philippine Stock Exchange for years 2007-2015

• Main Authors: Dela Cruz, Gabriel, Lim, Nicole, Ng Sy, Franchell, Yeung, Philene
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Stocks > Prices; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9046
• Institution: De La Salle University

Seasoned equity offerings (SEO) are follow-on offerings made by companies to issue additional shares. The objective of the study is to identify the corresponding SEO dates, abnormal returns of stock prices and significant effect of SEO announcement on companies' stock prices. This research hopes to focus on the impact of the timing of the announcements on the stock price of the issuing companies and isolate this from other investor consideration. There would be an estimation period of 190 days with two event windows. The first event window being -10 days before the announcement date and 10 days after the announcement date. The second event window being -3 days before the announcement and 3 days after the announcement date. Through the methodology, the researchers observed that there are some days that exhibit significant results. However, cumulative results for both event windows show that announcement of SEO resulted to negative insignificant returns around the announcement period. This study can greatly contribute to companies, future studies, market participants, and investors.