This paper uses a characteristics-based approach to examine the pattern of abnormal returns after seasoned equity offerings. Unlike previous studies the risk class of issuers are allowed to change in each of a series of six-month holding periods and firms are classified into categories based on...

This article examines the operating performance of firms surrounding Seasoned Equity Offerings (SEOs) and finds that weak operating performance by issuing firms begins during a 2-year period prior to issue. This is in contrast to the stylized facts that a seasoned equity issue initiates a period...

We use compensation data for a sample of 701 US public firms and document a significant positive relation between the level of executive compensation and the subsequent realized stock returns. In present value terms, shareholders in firms incurring a total compensation cost of $78 million above...