Managerial Optimism or Managerial Opportunism: From a Seasoned Equity Offerings Perspective
| Autor: | Yueh-Hsiang Lin, Ruei-Shian Wu |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Economics and Econometrics
050208 finance business.industry Accrual media_common.quotation_subject 05 social sciences Perspective (graphical) Equity (finance) Accounting Sample (statistics) 050201 accounting Monetary economics Optimism Information asymmetry 0502 economics and business Opportunism Business Finance media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.2908366 |
| Popis: | This study explores whether high-growth firms use accruals as a signal instead of a misleading device in seasoned equity offerings (SEOs). Using firms listed on the NYSE, AMEX, and NASDAQ from 1987 to 2010 as our sample and the subsequent 5 years of the sample firms to examine ex-post performance, we find a positive relation between pre-SEO discretionary accruals and SEO announcement returns only for high-growth companies. We also investigate the relation between pre-SEO discretionary accruals and post-SEO long-run returns and do not find a negative relation for the high-growth subsample. Finally, we find a positive relation between pre-SEO accruals and the long-run operating performance for the high-growth subsample. Our findings suggest that high-growth firms are more likely to use high abnormal accruals during SEOs as a signal of managerial optimistic perspectives, especially under high information asymmetry. Alternatively, managerial opportunism is more likely to appear in non-high-growth firms. |
| Databáze: | OpenAIRE |
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