Recent univariate seasoned equity offering (SEO) research investigates the valuation impact from the change in inside ownership levels that occurs when insiders use SEOs to lower their ownership levels. We extend this research by investigating if the change in inside ownership levels is a...

To what extent can hedge funds influence stock price volatility surrounding theannouncements of major corporate events? To answer this question, this paper examinesone of the more common major corporate events: seasoned equity offerings (SEOs). Wetest the impact of hedge fund variables on...

Purpose: The purpose of this paper is to explore if hedge fund variables (HFVs) are associated with long-run compounded raw returns (CRRs) for seasoned equity offering (SEO) firms for a six-year window around the offering month for firms undergoing SEOs. Design/methodology/approach: The event...

We examine the wealth impact of inside ownership on firms announcing leverage increases by issuing senior securities that retire junior securities. We find the market response to leverage increase announcements is influenced by the percentage of inside ownership. We show that firms with greater...

We examine the wealth impact of inside ownership on firms announcing leverage increases by issuing senior securities that retire junior securities. We find the market response to leverage increase announcements is influenced by the percentage of inside ownership. We show that firms with greater...