SEO firms' lottery-like characteristics, institutional ownership, and long-run performance

被引：6

作者：

Hsu, Junming ^{[1
]}

Yang, Tung-Hsiao ^{[1
]}

Sung, Po-Shen ^{[1
]}

机构：

[1] Natl Chung Hsing Univ, Dept Finance, 250 Kuo Kuang Rd, Taichung 402, Taiwan

来源：

JOURNAL OF BUSINESS RESEARCH | 2016年 / 69卷 / 06期

关键词：

Seasoned equity offerings; Lottery-like stocks; Institutional ownership; Long-run performance; EARNINGS MANAGEMENT; EQUITY; UNDERPERFORMANCE; MARKET; RETURNS;

D O I：

10.1016/j.jbusres.2015.12.024

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This study investigates whether firms' lottery-like characteristics (low price, great idiosyncratic volatility, and high skewness) affect institutions' participation in share allocation around seasoned equity offerings (SEOs) and firms' post-issue long-run performance. The results show that the level of institutional ownership of lottery-like firms is lower than non-lottery-like firms, but these lottery-like firms attract more new institutions to purchase SEO shares. When this study controls for related factors (e.g., changes in institutional ownership and systematic risk), lottery-like characteristics negatively associate with issuers' long-run performance. These results indicate that those lottery-like firms that institutions favor are able to improve their performance after SEOs but still underperform non-lottery-like firms. This result implies that many institutional investors are over-optimistic about the investment opportunities of lottery-like firms. (C) 2015 Elsevier Inc. All rights reserved.

引用

页码：2160 / 2166

页数：7

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