Is the Market Surprised by Poor Earnings Realizations following Seasoned Equity Offerings?

By David J. Denis, Atulya Sarin. Journal of Financial and Quantitative Analysis, 2001

113 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/05f435991c4c3d01db955ecd718f519594e92141

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Citations in the corpus

Operating Performance and the Method of Payment in Takeovers (2002, background): “Brous, Datar, and Kini (2001) and Denis and Sarin (2001) use this approach to investigate whether investor overoptimism at the time of seasoned equity offerings is responsible for the well-documented decline in stock price performance subsequent to seasoned equity offerings.”
Investor Psychology in Capital Markets: Evidence and Policy Implications (2001, unknown): “New issue firms perform especially badly at subsequent earnings announcement dates relative to a control group (Jegadeesh (2000), Denis and Sarin (2001)).”
EARNINGS QUALITY IN UK PRIVATE FIRMS: COMPARATIVE LOSS RECOGNITION TIMELINESS (2005, background): “Several studies control for cash flow levels when disaggregating accruals into discretionary and non-discretionary components (e.g., Rees, Gill and Gore (1996), Jeter and Shivakumar (1999), Denis and Sarin (2000)).”
Investment Banking and Securities Issuance (2003, methodology): “This has been done by Jegadeesh (2000) and Denis and Sarin (2001), who report that there are economically significant negative earnings announcement effects from the second quarter after the SEO until at least three years later.”
Operating performance following open market share repurchase announcements (2005, unknown): “For example, Cornett, Mehran, and Tehranian (1998), Rangan (1998), Shivakumar (2000), Brous, Datar, and Kini (2001) and Denis and Sarin (2001) examine abnormal stock returns around quarterly earnings announcements following seasoned equity offerings.”
Economic Sources of Gain in Stock Repurchases (2004, background): “While there are many news events one might consider, we focus on earnings announcements as has been done in many papers, including recently by Denis and Sarin (2001) and Brous, Datar and Kini (2001).”
Pricing of Seasoned Equity Offers and Earnings Management (2005, background): “1Consistent with this argument, Denis and Sarin (2001) show that, on average, post-SEO earnings announcements are met with a significantly negative stock price reaction, meaning that a portion of the issuing firm’s poor long-run performance is due to investors systematically overestimating its…”
Short- and Long-Horizon Behavioral Factors (2019, unknown): “Empirical evidence suggests that firms issue equity when their price-to-book ratio is high, and repurchase when they are low (Dong, Hirshleifer, and Teoh, 2012; Khan, Kogan, and Serafeim, 2012); that these sales and repurchases forecast the firms’ future returns in a way that is consistent with mark”