Strategic Financial Management: Evidence from Seasoned Equity Offerings

• Main Authors: BARCLAY, Michael, FU, Fangjian, SMITH, Clifford
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Capital Structure; Seasoned Equity Offerings; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3045; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4044/viewcontent/FuFJ2010RationalFMSEO.pdf
• Institution: Singapore Management University

Extant theories of capital structure assume myopic financial managers. So they have hard time to explain the financing behavior of seasoned equity offering (SEO) firms. In contrast with the pecking order theory, SEO firms typically are financially healthy companies with significant cash balances, lo...