اطلاعات حسابداری و ارزیابی عرضه سهام فصلی(SEOs)

This study investigates the association between publicly available information disclosed in the SEO prospectus and offer prices of SEOs, as well as the association between this type of publicly available information and stock returns subsequent to an SEO after controlling for self-selection bias. The empirical evidence shows that disclosure of the planned uses of the SEO proceeds reveals value-relevant information which has been incorporated by the underwriters in setting the offer prices. Control for self-selection bias appears necessary to obtain unbiased estimates in the regression model explaining the determinants of offer price in SEOs.

A number of studies have attempted to explain stock returns subsequent to Seasoned Equity Offerings (SEOs) by using variables that rely on historical accounting information. Specifically, these studies use historical financial information as potential drivers of post-issue stock returns.1,2 Firms, however, operate in a complex environment where the investor's needs for information force firms to provide additional information with a forward-looking orientation. The prospectuses of SEOs, for firms listed on the Athens Stock Exchange, contain information about the planned uses of the SEO proceeds and the forecasted earnings. The planned uses of the SEO proceeds provide information with a forward-looking orientation that has not been used to explain the post-issue stock return performance.3 The introduction of the planned uses of the proceeds as additional explanatory variables is important as it reveals to the stock market the future investments of the issuing firm. Another important aspect that has been neglected in the case of SEOs is that the external-financing decision comprises a natural self-selecting event. A firm's intention to seek external financing, through a rights issue, could itself reveal information about the capital structure and/or financial performance of the firm. To control for this self-selection-bias phenomenon, the study includes Heckman's (1979) inverse Mills' ratio in the regression models examined. This methodology requires that the sample include not only firms that have issued equity but also firms that have not (i.e. non-issuers). Cross-sectional regression models are used to investigate the association between the planned uses of the proceeds disclosed in the SEO prospectus. This includes the price at which the new shares are offered to the public and the stock returns subsequent to the seasoned equity offering event. The SEO prospectus discloses the intended uses of the proceeds, which are desegregated into four different categories: payment of pre-SEO debt, investments in working capital, investments in fixed assets, and investments in other companies. The study examines the following research questions: Do the underwriters efficiently price the SEOs by incorporating in the offer price all publicly available information, including information with a forward-looking orientation? If they do, then no association is expected between stock returns subsequent to the SEO event and the forward-looking information regarding the planned uses of the proceeds. In addition, is self-selection correction an important variable in explaining offer prices and stock returns? The following are the major findings of this study: The planned uses of the proceeds, the forecast of earnings, and the book value of equity are value-relevant in explaining offer prices. These findings suggest that underwriters rely on the information disclosed in the prospectus about capital that has already been invested (i.e., the book value of equity in the year prior to the SEO), the future investments of the firm (i.e., the planned uses of the proceeds), and the forecasts of earnings to set offer prices. The insignificance of the intended uses of the proceeds to explain stock returns subsequent to SEOs is consistent with efficient pricing of this information by the underwriters. The control for self- selection bias is necessary to obtain unbiased estimates only in the regression model that explains offer prices. The remainder of the paper is organized as follows: Section 2 describes the equity-offering process for Greek SEOs. Section 3 presents the research methodology developed to control for self-selection bias. Section 4 describes the sample and data sources. Section 5 discusses the empirical findings. Section 6 presents additional robustness checks and Section 7 summarizes the findings.

This study investigates the relation between publicly available information disclosed in the SEO prospectus and offer prices or post-issue stock returns after controlling for self-selection bias.28 Information with a forward-looking orientation has not been used to explain the market valuation of SEOs. The findings illustrate that underwriters rely on the prospectus information and they incorporate this information in setting offer prices. Omitted variables, which have an impact on the choice of an equity offering, indicate the presence of selection bias in determining the offer price of SEOs. This finding suggests that self-selection bias affects inferences and that future research should control for this bias. Moreover, the insignificance of the intended uses of the proceeds to explain stock returns subsequent to an SEO is consistent with efficient pricing of this information by the underwriters.