Sales of Secondary Shares in SEOs: A Comparison across Top Managers, Other Insiders, and Outsiders
type="main"> <p>This paper investigates the information content of registered insider sales in the Seasoned Equity Offering (SEO) process from 1997 to 2009. We find that initial market reactions and long-run post-issue stock performance are negatively related to C-level executive insider sales, but unrelated to participation by nonexecutive insiders. We also find significantly lower post-issue abnormal earnings surprises for SEOs with C-level executive sales. Overall, the findings are consistent with the predictions of asymmetric information and agency theories.
Year of publication: |
2014
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Authors: | Gokkaya, Sinan ; Highfield, Michael J. |
Published in: |
Financial Management. - Financial Management Association - FMA. - Vol. 43.2014, 4, p. 757-794
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Publisher: |
Financial Management Association - FMA |
Saved in:
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