The Impact of Seasoned Equity Offerings Announcement on Stock Return: Evidence from Life Cycle Hypothesis

• Main Authors: LIN, YUNG-SHUN, 林雍順
• Other Authors: Chang, Chun-Po
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/c56xfu

碩士 === 大葉大學 === 管理學院碩士在職專班 === 106 === The sample of the study consists of public companies in Taiwan for the period from 2000 to 2016. The present study investigates the effect of announcement effect at different business life cycle stages. Following Anthony and Ramesh (1992), we classify the life cycle stages: growth, maturity and decline by using firm age, capital spending rate, sales growth, and a composite score. The empirical results indicate as follows: The cumulative abnormal returns of listed companies are positive reaction after the seasoned equity offerings announcement. The cumulative abnormal returns are significantly positive of all stages in the life cycle after the seasoned equity offerings announcement. The returns of growth stage are higher than maturity and decline stages. The average abnormal returns of decline stage are higher than maturity and growth stages. As far as long-term performance is concerned, the long-term share price of all stages in the life cycle after the seasoned equity offerings announcement shows a negative reaction.