Is the Market Surprised By Poor Earnings Realizations Following Seasoned Equity Offerings ?

  title={Is the Market Surprised By Poor Earnings Realizations Following Seasoned Equity Offerings ?},
  author={David J. Denis},
We examine the stock price reaction to earnings announcements in the five years following seasoned equity offerings (SEOs). On average, post-SEO earnings announcements are met with a significantly negative abnormal stock price reaction. Although this negative reaction accounts for a disproportionately large portion of long-run post-SEO abnormal stock returns, on average, abnormal stock price reactions to post-SEO earnings announcements are reliably negative only within the smallest quartile of… CONTINUE READING
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