Rights statement: This is the peer reviewed version of the following article: Sun, J. , Zhou, Y. , Wang, J. (. and Guo, J. (. (2018), Influence of media coverage and sentiment on seasoned equity offerings. Account Finance. . doi:10.1111/acfi.12334 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/acfi.12334/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Accepted author manuscript, 826 KB, PDF document
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Influence of media coverage and sentiment on seasoned equity offerings
AU - Sun, Ji
AU - Zhou, Yi
AU - Wang, Jiaguo
AU - Guo, Jie (Michael)
N1 - This is the peer reviewed version of the following article: Sun, J. , Zhou, Y. , Wang, J. (. and Guo, J. (. (2018), Influence of media coverage and sentiment on seasoned equity offerings. Account Finance. . doi:10.1111/acfi.12334 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/acfi.12334/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
PY - 2020/4/24
Y1 - 2020/4/24
N2 - This article examines the role of media in seasoned equity offerings (SEOs) price and market reactions on SEO announcements. Using a sample of SEO deals in UK, we find that media coverage is significantly and negatively related to SEO price discounts and market returns around SEO announcements. Moreover, we document that more pessimistic media sentiment predicts larger SEO price discounts and more negative market reactions to SEO announcements. In summary, both media coverage and media sentiment influence investor decisions in SEOs, but through different mechanisms.
AB - This article examines the role of media in seasoned equity offerings (SEOs) price and market reactions on SEO announcements. Using a sample of SEO deals in UK, we find that media coverage is significantly and negatively related to SEO price discounts and market returns around SEO announcements. Moreover, we document that more pessimistic media sentiment predicts larger SEO price discounts and more negative market reactions to SEO announcements. In summary, both media coverage and media sentiment influence investor decisions in SEOs, but through different mechanisms.
KW - Announcement return
KW - Media coverage
KW - Media sentiment
KW - Offer discount
KW - Seasoned equity offerings
U2 - 10.1111/acfi.12334
DO - 10.1111/acfi.12334
M3 - Journal article
VL - 60
SP - 557
EP - 585
JO - Accounting and Finance
JF - Accounting and Finance
SN - 0810-5391
IS - S1
ER -