Chan, Kalok; Chan, Yue-Cheong - In: Journal of Financial Economics 114 (2014) 1, pp. 36-53
We investigate what stock return synchronicity reflects in terms of price informativeness by examining its effect on the pricing of seasoned equity offerings (SEOs). Based on 5,087 SEOs from 1984 to 2007, we find a significantly negative relation between stock return synchronicity (estimated as...