IDEAS home Printed from https://ideas.repec.org/a/fma/fmanag/gombola97.html
   My bibliography  Save this article

Evidence of Selling by Managers after Seasoned Equity Offering Announcements

Author

Listed:
  • Michael Gombola
  • Hei Wai Lee
  • Feng-Ying Liu

Abstract

Significant insider selling continues after a seasoned equity offering (SEO) is announced. This finding is consistent with earlier studies that equity offerings are undertaken by companies whose stock is overpriced. The study also suggests that the stock of firms that employ SEOs stays overpriced for several months after the offering.

Suggested Citation

  • Michael Gombola & Hei Wai Lee & Feng-Ying Liu, 1997. "Evidence of Selling by Managers after Seasoned Equity Offering Announcements," Financial Management, Financial Management Association, vol. 26(3), Fall.
    • Handle: RePEc:fma:fmanag:gombola97
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Louis T. W. Cheng & T. Y. Leung, 2008. "Is there information content from insider trading activities preceding earnings and dividend announcements in Hong Kong?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(3), pages 417-437, September.
    2. Ciner, Cetin & Karagozoglu, Ahmet K., 2008. "Information asymmetry, speculation and foreign trading activity: Emerging market evidence," International Review of Financial Analysis, Elsevier, vol. 17(4), pages 664-680, September.
    3. Asjeet S. Lamba & Walayet A. Khan, 1999. "Exchange Listings And Delistings: The Role Of Insider Information And Insider Trading," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 22(2), pages 131-146, June.
    4. Sinan Gokkaya & Michael J. Highfield, 2014. "Sales of Secondary Shares in SEOs: A Comparison across Top Managers, Other Insiders, and Outsiders," Financial Management, Financial Management Association International, vol. 43(4), pages 757-794, December.
    5. Ching-Chih Wu & Tung-Hsiao Yang, 2018. "Insider Trading and Institutional Holdings in Seasoned Equity Offerings," JRFM, MDPI, vol. 11(3), pages 1-14, September.
    6. Krishnan, C.N.V. & Ergungor, O. Emre & Laux, Paul A. & Singh, Ajai K. & Zebedee, Allan A., 2010. "Examining bank SEOs: Are offers made by undercapitalized banks different?," Journal of Financial Intermediation, Elsevier, vol. 19(2), pages 207-234, April.
    7. Firth, Michael & Leung, T.Y. & Rui, Oliver M., 2010. "Double signals or single signal? An investigation of insider trading around share repurchases," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 20(4), pages 376-388, October.
    8. Kahle, Kathleen M., 2000. "Insider trading and the long-run performance of new security issues," Journal of Corporate Finance, Elsevier, vol. 6(1), pages 25-53, March.
    9. Ching, Ken M.L. & Firth, Michael & Rui, Oliver M., 2006. "The information content of insider trading around seasoned equity offerings," Pacific-Basin Finance Journal, Elsevier, vol. 14(1), pages 91-117, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fma:fmanag:gombola97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Courtney Connors (email available below). General contact details of provider: https://edirc.repec.org/data/fmaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.