Home > Research > Publications & Outputs > Managers’ private information, investor underre...

Electronic data

  • J

    Rights statement: This is a pre-print of an article published in European Financial Management 19 (5), 2013. (c) Wiley-Blackwell

    Submitted manuscript, 233 KB, PDF document

Links

Text available via DOI:

View graph of relations

Managers’ private information, investor underreaction and long-run SEO performance

Research output: Contribution to journalJournal article

Published

Standard

Managers’ private information, investor underreaction and long-run SEO performance. / Bilinski, Pawel; Strong, Norman.

In: European Financial Management, Vol. 19, No. 5, 11.2013, p. 956-990.

Research output: Contribution to journalJournal article

Harvard

APA

Vancouver

Author

Bilinski, Pawel ; Strong, Norman. / Managers’ private information, investor underreaction and long-run SEO performance. In: European Financial Management. 2013 ; Vol. 19, No. 5. pp. 956-990.

Bibtex

@article{8f003d35cd8844c1af1cbe91036a1661,
title = "Managers{\textquoteright} private information, investor underreaction and long-run SEO performance",
abstract = "For a sample of 2,879 SEOs by US stocks from 1970 to 2004, this paper decomposes an average three-year post-issue buy-and-hold abnormal return of −25.9% (relative to size- and B/M-matched non-issuing stocks) into two components. One component, representing 41% of the total, is due to lower risk exposure. The second component, representing the remaining 59%, is abnormal performance related to the surprise element of the issue decision, which the paper attributes to managers{\textquoteright} private information that the market does not incorporate into the announcement return. This second component results in abnormal returns during the 16 months after the offering.",
keywords = "managerial private information, investor underreaction, seasoned equity issues, long-run performance",
author = "Pawel Bilinski and Norman Strong",
note = "This is a pre-print of an article published in European Financial Management 19 (5), 2013. (c) Wiley-Blackwell",
year = "2013",
month = nov
doi = "10.1111/j.1468-036X.2011.00616.x",
language = "English",
volume = "19",
pages = "956--990",
journal = "European Financial Management",
issn = "1354-7798",
publisher = "Wiley-Blackwell",
number = "5",

}

RIS

TY - JOUR

T1 - Managers’ private information, investor underreaction and long-run SEO performance

AU - Bilinski, Pawel

AU - Strong, Norman

N1 - This is a pre-print of an article published in European Financial Management 19 (5), 2013. (c) Wiley-Blackwell

PY - 2013/11

Y1 - 2013/11

N2 - For a sample of 2,879 SEOs by US stocks from 1970 to 2004, this paper decomposes an average three-year post-issue buy-and-hold abnormal return of −25.9% (relative to size- and B/M-matched non-issuing stocks) into two components. One component, representing 41% of the total, is due to lower risk exposure. The second component, representing the remaining 59%, is abnormal performance related to the surprise element of the issue decision, which the paper attributes to managers’ private information that the market does not incorporate into the announcement return. This second component results in abnormal returns during the 16 months after the offering.

AB - For a sample of 2,879 SEOs by US stocks from 1970 to 2004, this paper decomposes an average three-year post-issue buy-and-hold abnormal return of −25.9% (relative to size- and B/M-matched non-issuing stocks) into two components. One component, representing 41% of the total, is due to lower risk exposure. The second component, representing the remaining 59%, is abnormal performance related to the surprise element of the issue decision, which the paper attributes to managers’ private information that the market does not incorporate into the announcement return. This second component results in abnormal returns during the 16 months after the offering.

KW - managerial private information

KW - investor underreaction

KW - seasoned equity issues

KW - long-run performance

U2 - 10.1111/j.1468-036X.2011.00616.x

DO - 10.1111/j.1468-036X.2011.00616.x

M3 - Journal article

VL - 19

SP - 956

EP - 990

JO - European Financial Management

JF - European Financial Management

SN - 1354-7798

IS - 5

ER -