Download or read book The Long-Run Performance of Companies that Withdraw Seasoned Equity Offerings written by Michael J. Alderson and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the long-run stock price and operating performance of companies that withdraw seasoned equity offerings. Firms that withdraw an offering provide an opportunity to examine whether markets fully adjust to the information conveyed when managers announce the intent to issue shares, independent of any agency problems that might be intensified by the completion of the offering. As in completed seasoned equity offerings (SEOs), long-horizon event-time operating and stock price performance in sample firms is substantially lower than what is observed among control firms. Underperformance is also observed in an equal-weighted calendar-time analysis. Results are consistent with overpricing among small firms that attempt, but then withdraw, SEOs.