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http://ssrn.com/abstract=2021408
 
 

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Post-SEO Performance and Institutional Investors


Roger M. Edelen


University of California, Davis - Graduate School of Management

Ozgur Ince


University of South Carolina - Moore School of Business

Gregory B. Kadlec


Virginia Polytechnic Institute & State University - Pamplin College of Business

July 26, 2013


Abstract:     
We document a strong link between institutional investors and long-run stock return and operating performance following seasoned equity offerings (SEOs). Virtually all of the underperformance is confined to the top two quintiles of stocks with the largest increase in number of institutional investors prior to the post-issue underperformance. Moreover, non-SEO stocks with matching changes in institutional investors exhibit similar long-run underperformance to that of SEO stocks. Thus, we conclude that post-SEO underperformance is not due to the SEO per se but rather is a manifestation of more general effects associated with changes in institutional interest in a firm’s stock.

Number of Pages in PDF File: 52

Keywords: Seasoned Equity Offerings, Post-Issuance Anomalies, Institutional Investors

JEL Classification: G14, G20, G31, G32, D92

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Date posted: March 15, 2012 ; Last revised: November 26, 2013

Suggested Citation

Edelen, Roger M. and Ince, Ozgur and Kadlec, Gregory B., Post-SEO Performance and Institutional Investors (July 26, 2013). Available at SSRN: http://ssrn.com/abstract=2021408 or http://dx.doi.org/10.2139/ssrn.2021408

Contact Information

Roger M. Edelen
University of California, Davis - Graduate School of Management ( email )
One Shields Avenue
Davis, CA 95616
United States
Ozgur S. Ince (Contact Author)
University of South Carolina - Moore School of Business ( email )
1014 Greene Street
Columbia, SC 29208
United States
(803) 777-4905 (Phone)
Gregory B. Kadlec
Virginia Polytechnic Institute & State University - Pamplin College of Business ( email )
1016 Pamplin Hall
Blacksburg, VA 24061
United States
540-231-4316 (Phone)
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