signal their quality to the outside investors and to issue seasoned equity (SEO) at more favorable terms. While the initial … IPOs are more likely (i) to issue seasoned equity, (ii) to issue a larger portion of equity at the SEO, and (iii) to make … the SEO sooner after the IPO, all of which are consistent with the signaling hypothesis. This evidence suggests that the …

We reveal motivations of Chinese firms for issuing Seasoned Equity Offerings (SEO) by examining why firms change the … use of SEO proceeds and how they use unspecified SEO proceeds. Using 533 SEOs issued by Chinese firms during 1999 - 2006 …, we find that firms do not use unspecified SEO proceeds on capital investment regardless of the nature of controlling …