Japan SEOs Before the Lost Decade: A Long-Run Stock Performance

20 Pages Posted: 19 Jan 2018

See all articles by Peter J. DaDalt

Peter J. DaDalt

Susquehanna University

Sirapat Polwitoon

Sigmund Weis School of Business, Susquehanna University

Ali Zadeh

Susquehanna University - School of Business

Date Written: January 18, 2018

Abstract

This paper analyzes the long-run performance of 427 issues or 387 Japanese firms that made Seasoned Equity Offerings (SEO) from 1980-1990. We find that as opposed to U.S. SEO’s that concentrate on either growth firms (low book-to-market) or small firms, Japanese SEO’s under our study period concentrated on large firms. We employ different methodologies and find that performance evaluation is sensitive to the ways the tests are done. We find that holding-period-return of the value weighted portfolio of SEOs outperform three out of four benchmarks. Our results support the notion that underperformance of issuing firms widely documented is not robust under different methodologies.

Suggested Citation

DaDalt, Peter J. and Polwitoon, Sirapat and Zadeh, Ali, Japan SEOs Before the Lost Decade: A Long-Run Stock Performance (January 18, 2018). Available at SSRN: https://ssrn.com/abstract=3104908 or http://dx.doi.org/10.2139/ssrn.3104908

Peter J. DaDalt

Susquehanna University ( email )

Selinsgrove, PA 17870
United States
5703724524 (Phone)

Sirapat Polwitoon (Contact Author)

Sigmund Weis School of Business, Susquehanna University ( email )

514 University Ave.
Selinsgrove, PA 17870
United States
570-372-4749 (Phone)

Ali Zadeh

Susquehanna University - School of Business

Selinsgrove, PA 17870
United States

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