Abstract

http://ssrn.com/abstract=755695
 
 

References (53)



 
 

Citations (8)



 


 



Investment-Based Underperformance Following Seasoned Equity Offerings


Evgeny Lyandres


Boston University

Le Sun


State Street Corporate - State Street Global Advisors

Lu Zhang


Ohio State University - Fisher College of Business; National Bureau of Economic Research (NBER)

July 2005

NBER Working Paper No. w11459

Abstract:     
Adding a return factor based on capital investment into standard, calendar-time factor regressions makes underperformance following seasoned equity offerings largely insignificant and reduces its magnitude by 37-46%. The reason is that issuers invest more than nonissuers matched on size and book-to-market. Moreover, the low-minus-high investment-to-asset factor earns a significant average return of 0.37% per month. Our evidence suggests that the underperformance results from the negative investment-expected return relation, as predicted by Carlson, Fisher, and Giammarino (2005).

Number of Pages in PDF File: 54

working papers series





Download This Paper

Date posted: May 25, 2006  

Suggested Citation

Lyandres, Evgeny and Sun, Le and Zhang, Lu, Investment-Based Underperformance Following Seasoned Equity Offerings (July 2005). NBER Working Paper No. w11459. Available at SSRN: http://ssrn.com/abstract=755695

Contact Information

Evgeny Lyandres
Boston University ( email )
595 Commonwealth Avenue
Boston, MA 02215
United States
617-3582279 (Phone)
Le Sun
State Street Corporate - State Street Global Advisors ( email )
United States
Lu Zhang (Contact Author)
Ohio State University - Fisher College of Business ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States
585-267-6250 (Phone)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 921
Downloads: 34
References:  53
Citations:  8
People who downloaded this paper also downloaded:
1. Security Aspects of Internet Voting
By Guido Schryen

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.422 seconds