The Discount Dilemma: The Announcement Effects of Seasoned Equity Offerings on the Short-Run Performance of South African-listed Firms
(2022) NEKN02 20221Department of Economics
- Abstract
- The rationale behind the SEO and the correct pricing are of utmost importance to the success of the SEO, the share price performance, and any subsequent corporate projects the firm wishes to undertake. The primary objective of this research paper is to investigate how the share price of South African-listed firms is affected by the management team’s decision to announce the intention to undertake an SEO during the 2000 – 2022 period. To do so, we conducted an event study and found that the level of discounting and other firm-specific characteristics does can explain SEOs underperformance. We found that the negative price reaction post SEO announcement holds for South African firms. We also found that firm-specific and SEO-specific... (More)
- The rationale behind the SEO and the correct pricing are of utmost importance to the success of the SEO, the share price performance, and any subsequent corporate projects the firm wishes to undertake. The primary objective of this research paper is to investigate how the share price of South African-listed firms is affected by the management team’s decision to announce the intention to undertake an SEO during the 2000 – 2022 period. To do so, we conducted an event study and found that the level of discounting and other firm-specific characteristics does can explain SEOs underperformance. We found that the negative price reaction post SEO announcement holds for South African firms. We also found that firm-specific and SEO-specific characteristics have a more powerful effect on SEO’s performance than the level of discounting. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9087435
- author
- El Zarif, Aya LU and Eckleton, Craig
- supervisor
- organization
- course
- NEKN02 20221
- year
- 2022
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Event Study, Seasoned Equity Offering, Cumulative Abnormal Returns, South Africa, Discount Rate
- language
- English
- id
- 9087435
- date added to LUP
- 2022-10-10 09:34:02
- date last changed
- 2022-10-10 09:34:02
@misc{9087435, abstract = {{The rationale behind the SEO and the correct pricing are of utmost importance to the success of the SEO, the share price performance, and any subsequent corporate projects the firm wishes to undertake. The primary objective of this research paper is to investigate how the share price of South African-listed firms is affected by the management team’s decision to announce the intention to undertake an SEO during the 2000 – 2022 period. To do so, we conducted an event study and found that the level of discounting and other firm-specific characteristics does can explain SEOs underperformance. We found that the negative price reaction post SEO announcement holds for South African firms. We also found that firm-specific and SEO-specific characteristics have a more powerful effect on SEO’s performance than the level of discounting.}}, author = {{El Zarif, Aya and Eckleton, Craig}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Discount Dilemma: The Announcement Effects of Seasoned Equity Offerings on the Short-Run Performance of South African-listed Firms}}, year = {{2022}}, }