We empirically tests whether stock liquidity and investor sentiment have interactive effects on seasoned equity offers (SEOs) price discounts in Australia. Our results show that, in periods of deteriorating investor sentiment, the increase in SEO price discounts for firms with illiquid stocks is...

Recent evidence indicates that momentum profits are sensitive to market conditions. We find that the profits are higher when the markets continue in the same state than when they transition to a different state, consistent with the effects of correctional return reversals on the profits. Daniel,...