Change search
ReferencesLink to record
Permanent link

Direct link
Stock Price Performance Following Equity Offerings at Oslo Stock Exchange: Is Investing in SEO Companies Hazardous to Your Wealth?
Norwegian University of Science and Technology, Faculty of Social Sciences and Technology Management, Department of Industrial Economics and Technology Management.
2012 (English)MasteroppgaveStudent thesis
Abstract [en]

I examine the stock price performance following a seasoned equity offering at Oslo Stock Exchange. Through an empirical analysis I find that the existence of a negative announcement effect associated with issuing seasoned equity, as well as a long-run underperformance, is also applicable in the Norwegian market. The level of asymmetry can to a large extent explain the price drop and varies with characteristics like sector, offering size, floatation method, and pre-offer performance. The long-run performance results are more contradicting. By using a three-factor model based on the Fama and French model I find that issuing firms underperform in a three-year period following the issue. It is however argued that such a long-run underperformance is a result of mis-measurement between the issuing and non-issuing companies. This is in accordance to the market efficiency theory where the measured underperformance is only a result of the applied model not being able to price all risks. Keywords: Announcement effect, long-run underperformance, information asymmetry, mis-measurement of risk, size, three-factor regression model

Place, publisher, year, edition, pages
Institutt for industriell økonomi og teknologiledelse , 2012. , 63 p.
URN: urn:nbn:no:ntnu:diva-20970Local ID: ntnudaim:7843OAI: diva2:626517
Available from: 2013-06-09 Created: 2013-06-09 Last updated: 2013-06-22Bibliographically approved

Open Access in DiVA

fulltext(2283 kB)366 downloads
File information
File name FULLTEXT01.pdfFile size 2283 kBChecksum SHA-512
Type fulltextMimetype application/pdf
cover(184 kB)29 downloads
File information
File name COVER01.pdfFile size 184 kBChecksum SHA-512
Type coverMimetype application/pdf

By organisation
Department of Industrial Economics and Technology Management

Search outside of DiVA

GoogleGoogle Scholar
Total: 366 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 35 hits
ReferencesLink to record
Permanent link

Direct link