The long run performance of secondary equity offerings on the Johannesburg Stock Exchange

Cunha, Jesse Alves da; Seetharam, Yudhvir

doi:10.1108/ijoem-02-2017-0042

Cited by 3 publications

(2 citation statements)

References 32 publications

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“…Another unfavorable consequence determined in the literature is the underperformance of firms regarding the long-term post-SEO performance (Da Cunha and Seetharam 2018;Hsu et al 2016;Wadhwa and Syamala 2018;Yang et al 2013). Dasilas and Leventis (2013) stated that firms that announce an SEO will underperform for two years following the announcement.…”

Section: Literature Reviewmentioning

confidence: 99%

Seasoned Equity Offerings and Differences in Share-Price Impact by Firm Categories

Abdullah

Zaby

2021

IJFS

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The seasoned equity offering (SEO) market plays a significant role in the economic development of a country by providing liquidity for ongoing commercialization and innovation. This study is a comprehensive analysis of 149 SEOs and their effect on share prices in Thailand between 2009 and 2019. SEOs are categorized based on their time categories (early, mid, and grown) and volume categories (small, medium, big, and super). Using the event study methodology (multi-factor model), we find that most SEOs under both categories have a negative cumulative abnormal return (CAR) in the window period. Ranking the types of SEOs reveals that grown SEOs have the highest proportion of negative CAR under the time categories. Under the volume categories, medium SEOs show the largest share. The results were validated by regression assumption tests provided by Gnu Regression, Econometrics and Time-series Library, and correspond to established theories. The paper also contains an extensive literature review of studies examining the link between SEOs and share-price development. Our findings have important implications for corporations, investors, and regulatory bodies and can thus help in increasing market confidence for sustainable corporate funding.

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Section: Literature Reviewmentioning

confidence: 99%

Seasoned Equity Offerings and Differences in Share-Price Impact by Firm Categories

Abdullah

Zaby

2021

IJFS

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“…Kunjal et al, 2021) and stock markets (e.g. da Cunha and Seetharam, 2018). Some performance studies have also been conducted on insurance firms (e.g.…”

Section: Introductionmentioning

confidence: 99%

Solvency and performance persistence of defined benefit private and public pension plans

Mfoutou

Xie

2022

AJEMS

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PurposeThis study aims to examine the solvency and performance persistence of defined benefit private and public pension plans (DBPPs) in the Republic of Congo.Design/methodology/approachThe authors use the 2 × 2 contingency table approach and the time product ratio (TPR)-based cross-product ratio (CPR) on data covering ten years from 2011 to 2020, with variable funded ratios and excess returns, to determine the solvency and performance persistence of defined benefit pension plans.FindingsThe authors document a lack of solvency and performance persistence in DBPP funds. They conclude that the solvency and performance of DBPP funds are not repetitive. The previous year's private and public defined benefit pension funds’ results do not repeat in the current year. Hence, the current solvency and performance of defined benefit pension funds are not good predictors of future funds' solvency and performance.Originality/valueTo the best of the authors’ knowledge, this study is the first to combine solvency and performance to examine the persistence of defined benefit pension plans in sub-Saharan Africa.

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Long-Run Underperformance on Seasoned Equity Offerings: An Evidence from Indonesia

Rafik

Azmi

2019

Binus Business Review

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The research aimed to analyze the underperformance phenomenon following Seasoned Equity Offering (SEO)in Indonesian context. Samples were all firms listed on the Indonesia Stock Exchange with the right issue in the observed periods, were chosen by purposive sampling with several criteria. In total, there were 109 issuing firms from 2009-2014 that were analyzed using performance benchmarking approaches. The approaches consisted of market-based, size-based, growth-based, and industry-based benchmarks. The market-based was constructed using a market return. Then, the size and the growth benchmarks were constructed on the basis of closest market capitalization and closest price-to-book value respectively. Then, the industry benchmark was based on a closest combined of market capitalization and Price to Book Value (PBV) of matched firms within the first-second digit of Standard Industry Classification (SIC). The test was conducted using standard t and Wilcoxon tests by examining the benchmark-based abnormal returns over various spans ranging from 3 to 36 months following the right offerings. Like several findings in developed countries, the results also confirm the underperformance phenomenon following right offerings in Indonesia. The negative abnormal returns are found for all benchmark performances, but they are only significant for the market benchmark and partially significant for the size and the growth benchmarks. Behavioral explanations need to be modeled to reveal the intuitions behind the results.

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The long run performance of secondary equity offerings on the Johannesburg Stock Exchange

Cited by 3 publications

References 32 publications

Seasoned Equity Offerings and Differences in Share-Price Impact by Firm Categories

Seasoned Equity Offerings and Differences in Share-Price Impact by Firm Categories

Solvency and performance persistence of defined benefit private and public pension plans

Long-Run Underperformance on Seasoned Equity Offerings: An Evidence from Indonesia

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