EconPapers    
Economics at your fingertips  
 

Heterogeneous effects of the SEC’s Securities Offering Reform

Danial Hemmings, Lynn Hodgkinson and Qingwei Wang

Economics Letters, 2018, vol. 170, issue C, 131-135

Abstract: The SEC’s Securities Offering Reform (SOR) was intended to address information problems prior to Seasoned Equity Offerings (SEO), thereby mitigating the problem of SEO overpricing. Consistent with the propensity of overpricing increasing with idiosyncratic stock return volatility (IVOL), we find greater capital market benefits from SOR for high IVOL issuers. Counter to concerns that SOR also enables issuers to hype their stock, we find no evidence of market conditioning following SOR, even among high IVOL issuers.

Keywords: Securities Offering Reform; Seasoned Equity Offerings; Idiosyncratic volatility; Market conditioning (search for similar items in EconPapers)
JEL-codes: G14 G32 G38 M40 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176518302362
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:170:y:2018:i:c:p:131-135

DOI: 10.1016/j.econlet.2018.06.013

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-09-04
Handle: RePEc:eee:ecolet:v:170:y:2018:i:c:p:131-135