Seasoned Equity Offerings by New Economy Companies in Australia

35 Pages Posted: 4 Dec 2010

See all articles by Zoltan Murgulov

Zoltan Murgulov

Monash University - Department of Banking and Finance, Monash Business School; Financial Research Network (FIRN)

Graham N. Bornholt

Griffith University - Department of Accounting, Finance and Economics

Date Written: March 26, 2009

Abstract

Several recent papers present models to explain the probability and timing of seasoned equity offerings. Using a unique database of Australian new economy companies, we find no single model is adequate. The variables that are important in determining the probability of an SEO provide only limited support for explanations based on signalling models, market feedback and near-term liquidity needs. Similarly, the duration between an IPO and the first SEO is not explained by signalling or by near-term liquidity needs, and is only partially explained by market feedback.

Keywords: Initial and Seasoned Equity Offerings, Signalling, New Economy, Australia

JEL Classification: G12, G14, G19

Suggested Citation

Murgulov, Zoltan and Bornholt, Graham N., Seasoned Equity Offerings by New Economy Companies in Australia (March 26, 2009). Available at SSRN: https://ssrn.com/abstract=1718755 or http://dx.doi.org/10.2139/ssrn.1718755

Zoltan Murgulov (Contact Author)

Monash University - Department of Banking and Finance, Monash Business School ( email )

900 Dandenong Rd
Caulfield East
Victoria 3145
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Graham N. Bornholt

Griffith University - Department of Accounting, Finance and Economics ( email )

Gold Coast Campus
Gold Coast QLD, 4222
Australia

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