Conflicting signals: A study on firms announcing share repurchases soon after seasoned equity offerings

• Published in: Accounting and finance (Parkville) Vol. 65; no. 1; pp. 773 - 791
• Main Author: Wang, Jin‐Ying
• Format: Journal Article
• Language: English
• Published: Clayton Blackwell Publishing Ltd 01.03.2025
• Subjects: Market timing; seasoned equity offerings; share repurchases; stock returns

This study examines companies that announce open market share repurchases after seasoned equity offerings (SEO‐OMRs). This study finds that SEO‐OMRs have worse post‐OMR announcement returns, face a sharper decline in stock prices before OMR announcements, and have lower costs of buying back stocks....