Seasoned Equity Offerings by New Economy Companies in Australia
35 Pages Posted: 4 Dec 2010
Date Written: March 26, 2009
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: Suggested Citation