SEO Cycles

13 Pages Posted: 13 Jul 2010

See all articles by John S. Howe

John S. Howe

University of Missouri at Columbia - Department of Finance

Shaorong Zhang

Marshall University


Public equity offerings by seasoned firms (SEOs) exhibit similar but less volatile cycles than initial public offerings (IPOs) of newly public firms. Our paper provides a comprehensive examination of the factors that cause variation in the number of firms issuing SEOs. Specifically, we use four factors from studies of IPOs as potential determinants of SEO cycles. We find that whether tested separately or collectively, only the demand for capital and market timing hypotheses receive strong empirical support in explaining SEO volume. Investor sentiment is not an important factor in explaining SEO volume, nor is information asymmetry.

Suggested Citation

Howe, John S. and Zhang, Shaorong, SEO Cycles. Financial Review, Vol. 45, Issue 3, pp. 729-741, August 2010, Available at SSRN: or

John S. Howe (Contact Author)

University of Missouri at Columbia - Department of Finance ( email )

224 Middlebush Hall
Columbia, MO 65211
United States
573-882-5357 (Phone)
573-884-6296 (Fax)

Shaorong Zhang

Marshall University ( email )

Huntington, WV 25755-2300
United States

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