Tough times for seasoned equity offerings: performance during the COVID pandemic

Marc Zenzius, Christian Flore () and Dirk Schiereck
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Marc Zenzius: Technische Universität Darmstadt
Christian Flore: Technische Universität Darmstadt
Dirk Schiereck: Technische Universität Darmstadt

Journal of Business Economics, 2022, vol. 92, issue 9, No 4, 1510 pages

Abstract: Abstract This study analyzes the wealth effects of SEO announcements in the US during the COVID-19 pandemic and its main determinants. We find significantly negative abnormal returns of − 8.6%. This provides persuasive evidence that capital markets reacted particularly negative during this period, reflecting higher degrees of uncertainty. We furthermore find that larger firms experience a better SEO performance and that COVID-19 related biotech & healthcare firms react particularly negative. This effect is more negative the lower the company valuation beforehand.

Keywords: Covid; SEO; Event study (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11573-022-01089-6

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