Lot Winning Rate and the Classification of Seasoned Equity Offerings: Evidence from Taiwan

Abstract

This paper classifies two types of improved Season equity offerings (SEO) and regular SEO to investigate whether there are differential cumulative abnormal returns (CARs) around the announcement date of SEO in Taiwan. We find that regular SEO experiences negative CAR whereas improved SEO receive positive CAR during announcement period. The performance of regular SEO with large size firms and high B/M ratio is worse than that of improved SEO with small size firms and low B/M ratio.

Keywords: Seasoned Equity Offering (SEO), Regular SEO, Improved SEO

JEL Classification: G14, G32