Overinvestment and the Operating Performance of SEO Firms

• المؤلف الرئيسي: FU, Fangjian
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2010
• الموضوعات: Seasoned Equity Offerings; Operating performance; Overinvestment; Corporate Finance; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/3033; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4032/viewcontent/FuFJ2010Overinvestment.pdf

Prior studies have documented that firms' operating performance deteriorates following seasoned equity offerings (SEOs). This paper proposes and empirically tests the hypothesis that the poor performance is caused by managers' overinvestment. I show that, subsequent to the offering, SEO fi...