The Announcement Effect of Seasoned Equity Offerings with Respect to the Growth Potential and Insider Trading

• Main Authors: Yu-ping Su, 蘇郁屏
• Other Authors: Ming-Long Lee
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/21412549521283839355

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 94 === This study includes 318 companies which Seasoned Equity Offerings（SEO）from year 1996 to 2005. We use the factor model to evaluate the reaction on stock price during SEO period. Also, in order to analyze the testing-power of those models, we use the characteristic model to test if the returns of SEO companies would be worse than the non-SEO companies（pairing companies）during the offering period. The results are as follows: (1) The abnormal returns (three factors model) of the SEO companies is conspicuously positive. (2) The abnormal return（characteristic model）of SEO announcement is non-significant. (3) For the insiders of companies with low growth potential, the cumulative abnormal returns of buying stock and selling stock are different from model to model.