Media Attention and SEO Announcement Effect

• Main Authors: Wen-Siou Tsai, 蔡汶修
• Other Authors: Xuan-Qi Su
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/36682311104037929825

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 102 === This paper tests information signaling hypothesis by studying the impact of the pre-announcement media attention on share-price reaction during seasoned equity offerings (SEOs) announcements. In a sample of Taiwan firms that under take SEOs announcements from 1996 through 2011, we find that the average pre-announcement abnormal return for firms with pre-announcement media attention (positive) is significantly higher. Consistent with the information signaling hypothesis, our evidence suggests that market investors tend to view media attention as a channel to signal firms’ intrinsic value.