Institute of Business and Management
|關鍵字:||現金增資股票（SEOs）;折價;訊號;績效;Seasoned Equity Offerings (SEOs);Underpricing;Signal;Performance|
Companies that issue underpriced seasoned equity offerings (SEOs) provide an arbitrage opportunity, which is a substantial benefit for investors willing to purchase. However, significant underpricing indicates an overestimation of the current market price. Furthermore, regardless of whether each SEOs offers the same discount range, investment feasibility may differ. Thus, we propose a novel underpricing analysis model and develop a specific measurement approach named ”superior underpricing.” The empirical results show that investors who subscribe to SEOs with substantial discount offerings struggle to achieve their expected profit because of a negative market reaction. By contrast, SEOs with higher underpricing features, which offer greater operating achievements at the given underpricing level, achieve superior performance during the initial period. Estimated results using a Fama-French three-factor model also support these findings. Therefore, we contend that a company's operating achievements must be considered when assessing underpricing.
Journal of Management and Systems