Why Do Firms Conduct Seasoned Equity Offerings Shortly After IPO? Evidence from Taiwan

• Main Authors: Chun-Chieh Chen, 陳俊捷
• Other Authors: 陳文華
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/24038675848350142901

碩士 === 國立臺灣大學 === 商學研究所 === 95 === We investigate the reason behind the IPO firm’s decision to conduct a primary seasoned equity offering (SEO). In this paper, we follow the two-period model of blockholder incentives starting from the IPO stage developed by Harjoto and Garen (2003). Using a sample of Taiwan IPO firms during 1996 to 2000, we find that IPO firms with higher anticipated opportunities of growth are more likely to conduct an SEO within four years after their IPOs and positively affect the relative size of the firm’s SEO. We also find that the firm’s risk measure decreases the likelihood of conducting an SEO and reduces the relative size of an SEO. All our empirical findings provide support of the two-period model developed by Harjoto and Garen (2003).