ETF ownership and seasoned equity offerings
ETF ownership and seasoned equity offerings
This paper investigates the impact of 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.
ETF Ownership, Post-Issue Performance, SEO Propensity, Seasoned Equity Offerings
Evans, Kevin P.
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Leung, Woon Sau
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Li, Junqiu
292cbb4e-faa1-421b-870d-c4175798e89e
Mazouz, Khelifa
efb38409-bd94-45ab-ba50-aa5b8640f614
Evans, Kevin P.
e8653f68-5d2e-4ac9-8c3a-074b8187787c
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Li, Junqiu
292cbb4e-faa1-421b-870d-c4175798e89e
Mazouz, Khelifa
efb38409-bd94-45ab-ba50-aa5b8640f614
Evans, Kevin P., Leung, Woon Sau, Li, Junqiu and Mazouz, Khelifa
(2023)
ETF ownership and seasoned equity offerings.
Journal of Financial and Quantitative Analysis.
(doi:10.1017/S002210902300042X).
Abstract
This paper investigates the impact of 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.
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etf-ownership-and-seasoned-equity-offerings
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Accepted/In Press date: 2023
e-pub ahead of print date: 11 April 2023
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Publisher Copyright:
© 2023 Cambridge University Press. All rights reserved.
Keywords:
ETF Ownership, Post-Issue Performance, SEO Propensity, Seasoned Equity Offerings
Identifiers
Local EPrints ID: 484588
URI: http://eprints.soton.ac.uk/id/eprint/484588
ISSN: 0022-1090
PURE UUID: 0f93350d-e7a7-4803-a274-b147c99ac717
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Date deposited: 17 Nov 2023 17:55
Last modified: 18 Mar 2024 04:17
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Contributors
Author:
Kevin P. Evans
Author:
Woon Sau Leung
Author:
Junqiu Li
Author:
Khelifa Mazouz
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