Seasoned Equity Offerings and Disclosure Sentiment Effects: Evidence from the U.S.
Abstract
This paper updates the data regarding Seasoned Equity Offering firms (SEOs) long-term
performance and finds evidence in line with prior research that they underperform in the longterm.
Furthermore, using automated textual analysis on the relevant disclosure filings SEO firms
in the United States publish (Form 10-K, Form 8-K and Form 424B), we investigate the
relationship between disclosure sentiment variables and long-term return performance. The
evidence shows that more frequent use of negative and uncertain words is associated with worse
performance. However, no clear implication of the use of disclosure sentiment variables as viable
trading predictors can be shown, after controlling for specific conditions and risk.
Degree
Master 2-years
Other description
MSc in Finance
Collections
View/ Open
Date
2023-06-29Author
Mauritz, Max
Phojan, Phornchanok
Keywords
Seasoned Equity Offerings
Long-Term Event Study
Buy-and-Hold Abnormal Returns
Textual Analysis
Disclosure Sentiment
Disclosure Tone
Series/Report no.
2023:215
Language
eng