The Operating Performance of Firms Conducting Seasoned Equity Offerings in Bangladesh

Dhaka University Journal of Business Studies, Vol. xxiii, No. 2, December 2002

13 Pages Posted: 16 Jan 2008 Last revised: 16 Jul 2014

See all articles by Mohammad Sadiqul Islam

Mohammad Sadiqul Islam

University of Dhaka - Department of Finance

Muhammad Mosfique Uddin

University of Dhaka - Department of Finance

Shabbir Ahmad

University of Dhaka - Department of Finance

Abstract

This study attempts to examine the behavior and to identify the determinants of operating performance of SEOs in Bangladesh. It has been documented that firms making SEOs in Bangladesh tend to have improving operating performance prior to the equity offering and to have a declining operating performance after the equity offering. The decline in the operating performance of smaller firms during the post issue period is more severe than that of larger firms. Regression analysis indicates that the growth of assets faster than sales growth and the size of firm have significant influence on the operating performance of SEO firms. The major implications include the over-optimism of managers about the return on their investments and the existence of a possible earnings management by the SEO firms prior to equity offering.

Keywords: Seasoned Equity, Equity Offering, Operating performance

Suggested Citation

Islam, Mohammad Sadiqul and Uddin, Muhammad Mosfique and Ahmad, Shabbir, The Operating Performance of Firms Conducting Seasoned Equity Offerings in Bangladesh. Dhaka University Journal of Business Studies, Vol. xxiii, No. 2, December 2002, Available at SSRN: https://ssrn.com/abstract=1083672

Mohammad Sadiqul Islam (Contact Author)

University of Dhaka - Department of Finance ( email )

Department of Finance
University of Dhaka
Dhaka, 1000
Bangladesh

Muhammad Mosfique Uddin

University of Dhaka - Department of Finance

Department of Finance
University of Dhaka
Dhaka, 1000
Bangladesh

Shabbir Ahmad

University of Dhaka - Department of Finance

Department of Finance
University of Dhaka
Dhaka, 1000
Bangladesh

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
161
Abstract Views
724
rank
234,035
PlumX Metrics