Why Do US Firms Choose Global Equity Offerings?

Congsheng Wu and Chuck C.Y. Kwok

Financial Management, 2002, vol. 31, issue 2

Abstract: This study examines the economic motivation for global seasoned equity offerings made by US firms. We find that firms announcing global offerings have significantly less-negative market reactions than had they limited the issues to domestic only. The extent of the reduced price drop at issue announcement is found to be negatively associated with pre-announcement price run-up, firm size, and market-to-book equity, but positively associated with unsystematic risk. We also find that global issuing firms outperform their domestic counterparts for up to three years following the offerings.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:fma:fmanag:kwok02

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