Reportgreen2005

Investment-Based Underperformance Following Seasoned Equity Offerings

29 citations0/0 files storedNational Bureau of Economic Research

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Markets and Investment Strategies Corporate Finance and Governance Financial Analysis and Corporate Governance

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).

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 29 citations exist upstream.

References

1995The New Issues Puzzle 2005Is value riskier than growth?1994Market Underreaction to Open Market Share Repurchases 1998Managerial Decisions and Long-Term Stock Price Performance 2003Pseudo Market Timing and the Long‐Run Underperformance of IPOs 2002Long‐Run Performance following Private Placements of Equity 1998Optimal Investment, Growth Options, and Security Returns 1994Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.