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

@inproceedings{Denis2000IsTM,
  title={Is the Market Surprised By Poor Earnings Realizations Following Seasoned Equity Offerings ?},
  author={David J. Denis},
  year={2000}
}
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
Highly Cited
This paper has 28 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.

References

Publications referenced by this paper.
Showing 1-10 of 41 references

Analyst Following of Initial Public Offerings.

  • R. Rajan, H. Servaes
  • Journal of Finance,
  • 1997
Highly Influential
6 Excerpts

Gompers. “Is the Abnromal Return Following Equity Issuances Anomalous?

  • A. Brav, C. Geczy, P.A
  • Journal of Financial Economics,
  • 2000
Highly Influential
7 Excerpts

Earnings Management and the Performance of Seasoned Equity Offerings.

  • S. Rangan
  • Journal of Financial Economics,
  • 1998
Highly Influential
11 Excerpts

Is the Market Optimistic About the Future Earnings of Seasoned Equity Offering Firms?

  • P. A. Brous, V. Datar, O. Kini
  • Working Paper, Georgia State University
  • 1998
Highly Influential
8 Excerpts

Long-run Performance of Seasoned Equity Offerings: Benchmark Errors and Biases in Expectations.

  • N. Jegadeesh
  • Working Paper, University of Illinois
  • 1998
Highly Influential
12 Excerpts

The New Issues Puzzle.

  • T. Loughran, J. R. Ritter
  • Journal of Finance,
  • 1995
Highly Influential
9 Excerpts

Underperformance in Long-Run Stock Returns Following Seasoned Equity Offerings.

  • D. K. Spiess, J. Affleck-Graves
  • Journal of Financial Economics,
  • 1995
Highly Influential
6 Excerpts

Corporate Earnings and Financings: An Empirical Analysis.

  • R. S. Hansen, C. Crutchley
  • Journal of Business,
  • 1990
Highly Influential
4 Excerpts

Post-earnings-announcement Drift: Delayed Price Response or Risk Premium?

  • V. L. Bernard, J. K. Thomas
  • Journal of Accounting Research, Suppl
  • 1989
Highly Influential
5 Excerpts

Similar Papers

Loading similar papers…