ETF ownership and seasoned equity offerings

Evans, Kevin P. ORCID: https://orcid.org/0000-0001-8854-2629, Leung, Woon Sau, Li, Junqiu and Mazouz, Khelifa ORCID: https://orcid.org/0000-0001-6711-1715 2023. ETF ownership and seasoned equity offerings. Journal of Financial and Quantitative Analysis 10.1017/S002210902300042X

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Abstract

This article investigates the impact of exchange-traded fund (ETF) ownership on seasoned equity offerings (SEOs). We find that increases to firms’ ETF ownership is positively related to their propensity to conduct an SEO. ETF ownership is also associated with less negative SEO announcement returns, smaller discounts, and better long-run stock returns. Our evidence is consistent with equity issuance following investor demand for stocks driven by greater participation in ETFs, suggesting a possible alternative source of market timing opportunity.

Item Type:	Article
Date Type:	Published Online
Status:	In Press
Schools:	Business (Including Economics)
Publisher:	CUP
ISSN:	1756-6916
Date of First Compliant Deposit:	24 December 2022
Date of Acceptance:	21 December 2022
Last Modified:	06 Jan 2024 03:35
URI:	https://orca.cardiff.ac.uk/id/eprint/155285

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