Heterogeneous effects of the SEC's securities offering reform

Hemmings, Danial, Hodgkinson, Lynn and Wang, Qingwei ORCID: https://orcid.org/0000-0002-3695-7846 2018. Heterogeneous effects of the SEC's securities offering reform. Economics Letters 170 , pp. 131-135. 10.1016/j.econlet.2018.06.013

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Abstract

The SEC’s Securities Offering Reform (SOR) was intended to address information problems prior to Seasoned Equity Offerings (SEO), thereby mitigating the problem of SEO overpricing. Consistent with the propensity of overpricing increasing with idiosyncratic stock return volatility (IVOL), we find greater capital market benefits from SOR for high IVOL issuers. Counter to concerns that SOR also enables issuers to hype their stock, we find no evidence of market conditioning following SOR, even among high IVOL issuers.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	0165-1765
Date of First Compliant Deposit:	25 June 2018
Date of Acceptance:	13 June 2018
Last Modified:	07 Nov 2024 02:00
URI:	https://orca.cardiff.ac.uk/id/eprint/112143

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