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Effects of market timing and corporate financial flexibility on seasoned equity offerings
Cho, Yi Ching
Chen, Hong Yi
Cho, Yi Ching
|Issue Date: ||2016-07-20 17:12:50 (UTC+8)|
應與公司本身財務彈性所影響。本研究以 1980 年至 2015 年間,美國證券
市場 328 家撤銷現金增資的公司與 11,754 家完成現金增資的公司為樣本,
The main purpose of this study is to examine whether the interaction between market reaction to the announcement and financial flexibility of seasoned equity offering (SEO) will affect the decision of SEO cancellation. This study includes 328 canceled SEOs and 11,754 completed SEOs in U.S. market from 1980 to 2015 and conducts a comprehensive analysis on the decision of SEO cancellation. We find that, consistent with market timing theory, SEO firms tend to cancel their equity offerings if the market reaction to those SEOs are negative. We further investigate determinants of the decision of SEO cancellation. We find that SEO cancellation is negatively associated with stock price reaction and the growth opportunity, and positively associated with the profitability. In addition, we show the evidence that the association between SEO cancellation decision and the market condition depends on the level of financial flexibility for SEO firms. Specifically, we find that firms with more financial flexibility tend to cancel SEOs if their stock prices experience a large decline around the filing date, while firms with less financial flexibility will complete equity issuance regardless of the market conditions.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0103357032|
|Data Type: ||thesis|
|Appears in Collections:||[財務管理學系] 學位論文|
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