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Does liquidity risk explain low firm performance following seasoned equity offerings?

Research output: Working paper

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Does liquidity risk explain low firm performance following seasoned equity offerings? / Bilinski, Pawel; Strong, Norman; Liu, Weimin.
Lancaster: Lancaster University, 2011.

Research output: Working paper

Harvard

Bilinski, P, Strong, N & Liu, W 2011 'Does liquidity risk explain low firm performance following seasoned equity offerings?' Lancaster University, Lancaster.

APA

Bilinski, P., Strong, N., & Liu, W. (2011). Does liquidity risk explain low firm performance following seasoned equity offerings? Lancaster University.

Vancouver

Bilinski P, Strong N, Liu W. Does liquidity risk explain low firm performance following seasoned equity offerings? Lancaster: Lancaster University. 2011.

Author

Bilinski, Pawel ; Strong, Norman ; Liu, Weimin. / Does liquidity risk explain low firm performance following seasoned equity offerings?. Lancaster : Lancaster University, 2011.

Bibtex

@techreport{45476e56cc454e239f311b0a709ae27c,
title = "Does liquidity risk explain low firm performance following seasoned equity offerings?",
abstract = "By making seasoned equity offerings (SEO), firms can improve the liquidity of their shares and lower their costs of capital. This paper examines whether SEO firms achieve such a liquidity gain and explores the role of liquidity risk in explaining their long-run performance. Consistent with predictions, SEO firms experience significant post-issue improvements in liquidity and reductions in liquidity risk. Size and book-to-market matching fails to control for these liquidity effects, generating the low long-term post-SEO performance documented in the literature. SEO firms show normal long-term performance after adjusting for liquidity risk.",
author = "Pawel Bilinski and Norman Strong and Weimin Liu",
year = "2011",
language = "English",
publisher = "Lancaster University",
type = "WorkingPaper",
institution = "Lancaster University",

}

RIS

TY - UNPB

T1 - Does liquidity risk explain low firm performance following seasoned equity offerings?

AU - Bilinski, Pawel

AU - Strong, Norman

AU - Liu, Weimin

PY - 2011

Y1 - 2011

N2 - By making seasoned equity offerings (SEO), firms can improve the liquidity of their shares and lower their costs of capital. This paper examines whether SEO firms achieve such a liquidity gain and explores the role of liquidity risk in explaining their long-run performance. Consistent with predictions, SEO firms experience significant post-issue improvements in liquidity and reductions in liquidity risk. Size and book-to-market matching fails to control for these liquidity effects, generating the low long-term post-SEO performance documented in the literature. SEO firms show normal long-term performance after adjusting for liquidity risk.

AB - By making seasoned equity offerings (SEO), firms can improve the liquidity of their shares and lower their costs of capital. This paper examines whether SEO firms achieve such a liquidity gain and explores the role of liquidity risk in explaining their long-run performance. Consistent with predictions, SEO firms experience significant post-issue improvements in liquidity and reductions in liquidity risk. Size and book-to-market matching fails to control for these liquidity effects, generating the low long-term post-SEO performance documented in the literature. SEO firms show normal long-term performance after adjusting for liquidity risk.

M3 - Working paper

BT - Does liquidity risk explain low firm performance following seasoned equity offerings?

PB - Lancaster University

CY - Lancaster

ER -